Life insurance offers financial protection and peace of mind for you and your family when it’s needed most. This is especially important if you are the primary income earner in your family.
Basic life insurance
Basic life insurance is mandatory for plan members, at a maximum of $250,000. At age 65, coverage reduces by 50%; coverage terminates at age 70. You also may choose to purchase additional optional life insurance, in units of $10,000 to a maximum of $250,000, for yourself and/or your eligible spouse or partner.
In either case, It is imperative to ensure you name a beneficiary (or beneficiaries) and review this information as needed to be sure that, in the event of your death, the appropriate person(s) receives payment.
What is a beneficiary?
A beneficiary is a person (or persons) who will receive the funds from your life insurance policy. If you die without naming anyone, the money will go to your estate by default. When you name a beneficiary, the money does not go to your estate, but directly to the beneficiary(ies). All designations are revocable unless specifically indicated, in all provinces and territories except Quebec. In Quebec, designation of spouse (married or civil union) is irrevocable unless otherwise stipulated. You can change revocable beneficiary(ies) at any time, but irrevocable beneficiary(ies) can only be changed with the beneficiary’s consent.
You can name your spouse, children, dependents, another family member, a friend or a charity as a beneficiary. If you want a child or children to receive the money, you must name a trustee to hold the death benefit in trust until they reach the age of 18.
Want more information? Login to Understanding your plan to view full details in your benefits booklet.