Life Insurance 101

Who can be a beneficiary?

Your beneficiary is the person or entity who receives the death benefit. You can name individuals, a trust, a charity, or your estate — and the choice carries real consequences.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

Primary beneficiary

The first in line to receive the payout — a spouse, child, sibling, friend, trust, or charity. You can name more than one and split the benefit by percentage (say, 50% to a spouse and 50% to a child).

Contingent (secondary) beneficiary

Who receives the benefit if the primary beneficiary has already passed away. Naming one ensures the payout still reaches someone you intend.

Special considerations

• Minors: a benefit to a minor may be held in trust or managed by a guardian until adulthood;
• Charity: you can name a charity as part of a legacy plan;
• Your estate: naming the estate sends the payout through probate, which can mean delays and potential estate costs.

Keep it current

Review your beneficiaries regularly — especially after marriage, divorce, or the birth of a child — so your policy always reflects your wishes.