How do I set up secondary beneficiaries on my life insurance policy in Ontario?

Setting up a secondary (contingent) beneficiary on a life insurance policy in Ontario is done through a change of beneficiary form available from your insurer. You first name your primary beneficiary (who receives the death benefit if they survive you), then name your contingent (secondary) beneficiary who receives the proceeds if the primary beneficiary has predeceased you.

You can name more than one contingent beneficiary and specify percentages. For example, you might name your spouse as primary beneficiary and your three children in equal shares as contingent beneficiaries.

Most insurers allow "per stirpes" allocations at the contingent level, meaning if one of your contingent beneficiaries has also predeceased you, their share passes to their own children (your grandchildren) rather than being split among the surviving contingent beneficiaries. This must be explicitly requested.

If neither a primary nor a contingent beneficiary survives you, the death benefit typically falls into your estate and is subject to probate. Keeping your designations current and naming both primary and contingent beneficiaries reduces the likelihood of this outcome.

Contact your insurer's customer service or your insurance advisor to obtain the right form for making these changes.