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The importance of naming a beneficiary: Here’s what you need to know

Naming your beneficiary is a BIG decision, and a critical part of your group life insurance benefits. It is one of the most important things you do when you enrol in a new employee group benefits plan, or if you have a life event like getting married or divorced.
It’s important that you make sure the right people benefit from your insurance.
Protecting your loved ones
By naming your beneficiary (or beneficiaries), you can protect yourself and your loved ones and ensure that your wishes will be met upon your death. If a beneficiary(ies) is not designated by you on your group life insurance benefits, the proceeds from your policy will be directed to your estate.
Designating a beneficiary enables the insurance company to pay out the benefits of your life insurance policy to your beneficiary(ies) (tax free) without the delay of settling your estate.
If you do not designate a beneficiary, then your benefits will be paid to your estate and may be subject to probate laws.
Naming your beneficiary
You can choose anyone as your beneficiary. While most people tend to choose a spouse, child(ren), or a member of their family, it is not required. You may also choose to name a charity instead of an individual.
If you have a minor beneficiary designation, such as your child(ren) who are under the age of 18, it is important that you also appoint a trustee. A trustee is a person appointed by you to hold the minor’s proceeds in trust until the minor reaches the age of majority for your specific province. If a trustee is not appointed, one will be appointed to act on behalf of the minor upon your death.

Did you know that you can complete your beneficiary designation online? Follow these steps: How do I designate a beneficiary(ies) for my group life coverage?
NOTE: If you have irrevocable beneficiary designations, minor beneficiary(ies) designation or proxy enrolments (for example, when an OTIP employee completes a beneficiary designation on your behalf), you must complete and submit the Beneficiary Designation form (paper version) to OTIP.

We encourage you to review your beneficiary designation information at least once a year, or whenever you have a major life change such as getting married, divorced, or having a child. Failing to do so could result in your life insurance policy proceeds not going to the person you intended.
If you have any questions about naming a beneficiary, you should speak to your financial or legal advisor for advice. You can also learn more about beneficiary designation, and minor beneficiary designation, at or by contacting OTIP Benefits Services at 1-866-783-6847.
For coverage related eligibility, you can review your benefits booklet in My Library.

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