The beneficiary designation affects whether or not insurance proceeds are protected from your creditors. Provincial insurance laws provide that where a spouse, child, grand-child or parent is named as the beneficiary, the insurance money is
exempt from seizure by any credi-tors you may have.In Quebec, the beneficiary must be related to the policyholder. In other provinces, such a beneficiary must be related to the person whose life is insured.

If your beneficiary predeceases you, the insurance money goes to your estate unless you have named a contingent beneficiary. In the case of death at the same time (e.g., in an accident), insurance law provides that the beneficiary is deemed to
have died first. Again, the insur-ance money goes to your estate
unless you have named a contin-gent beneficiary