Why Naming a Beneficiary on Your Life Insurance Matters in Canada
When it comes to life insurance, one small decision can make a huge difference for your loved ones: naming a beneficiary. As an insurance broker in Grande Prairie, I see this step overlooked far too often—and it can cost families unnecessary time, money, and stress.
Here’s why you should name a beneficiary instead of letting your life insurance payout go to your estate.
Life Insurance Beneficiary
1. Avoid Probate Fees
When your life insurance payout goes directly to a named beneficiary, it bypasses your estate. This means no provincial probate fees—saving your family potentially thousands of dollars.
2. Faster Payouts
Beneficiaries can receive funds in just weeks. If the payout goes to your estate, it can take months (or even longer) to settle. That delay can cause real financial strain for your loved ones.
3. Keep It Private
Estate distributions are public record, but life insurance payouts to a beneficiary remain private. Your family’s finances stay exactly that—private.
4. Protect Against Creditors
In many cases, naming a spouse, child, grandchild, or parent as your beneficiary means the payout is protected from creditors of your estate.
5. Ensure Your Wishes Are Followed
By naming a beneficiary, you guarantee the money goes exactly where you want it—no disputes, no delays, no confusion.
💡 The bottom line: If you’re paying for life insurance, make sure it’s set up to truly protect your family. An experienced insurance broker can review your policy to ensure your beneficiary designations are clear, up to date, and working in your family’s best interest.
📍 Serving contractors, small business owners, and families in Grande Prairie and across Alberta, British Columbia and Ontario.
📞 Ready to protect your legacy? Contact me today for a no-obligation review of your life insurance or group benefits plan.
I specialize in helping contractors and small business owners across Alberta, British Columbia and Ontario understand and implement simple, affordable insurance plans—without the jargon or confusion. I keep it quick and efficient, everything can be handled over the phone and by email. I know how valuable your time is.
By Amber McGuinness, Benefits Specialist
