Why should I designate beneficiaries?
Even if your spouse has prior right to the death benefit under the law, it's important to keep your beneficiary designation up-to-date. If the beneficiary designation isn't clear, the death benefit amount may be paid to the wrong person, and this may result in legal proceedings. Make sure to clearly designate your beneficiaries to save your heirs the hassle.
If there are no named beneficiaries, the value of your accumulated benefits in the DGPP will be paid to your estate.
Who can I name as beneficiaries?
Beneficiaries can be family members, friends or organizations that are important to you. If you designate them as beneficiaries, the DGPP would pay the benefit directly to them in the event of your death.
You may also designate your estate. In this case, the DGPP would pay the death benefit to your estate in the event of your death. Once in your estate, the money can be used to pay off your debts, among other things. The remaining amounts are then distributed according to the instructions in your will.
If you designate an
irrevocable beneficiary, you will need to have this person’s signature in order to make the change.
Contact us to obtain the required form to do so. The only exception to this is if your beneficiary was your spouse and you get divorced; the divorce automatically cancels this designation.
See the Death section for more information about the tax implications of paying the death benefit.