What do I need to know when designating my beneficiary(ies)?

You are required to nominate who will receive the proceeds of your life and/or accidental death benefits in the event of your death.

Important information about designating a beneficiary:

  • The initial designation of a beneficiary is made on the PEBT Benefits Enrolment Form.
  • You may nominate anyone you wish as a beneficiary.
  • You may nominate more than one person as a beneficiary and allocate a percentage of the total benefit by beneficiary.
  • You should appoint a Trustee on the PEBT Benefits Enrolment Form if the beneficiary(ies) are not of legal age.
  • If you wish to change your beneficiary(ies), you must complete, sign and date the PEBT Benefits Change Form.
  • The School District Benefits Administrator will file the PEBT Benefits Enrolment Form and PEBT Benefits Change Form (if applicable) in your personnel file for use in the event of your death.

Note:

  • There are two types of beneficiaries – revocable and irrevocable.
  • All beneficiaries are revocable unless the employee provides written notice to the Benefits Administrator that the beneficiary is irrevocable.

TO EFFECT A CHANGE FROM AN IRREVOCABLE BENEFICIARY TO ANY OTHER BENEFICIARY, ONE OF THE FOLLOWING DOCUMENTS IS REQUIRED:

  • Renunciation by the irrevocable beneficiary, or
  • Evidence of death of the irrevocable beneficiary, or
  • Final Decree of Divorce, if the irrevocable beneficiary is the spouse of the employee

ESTATE AS A BENEFICIARY

If you do not wish to designate any specific person as beneficiary, you should indicate “Estate” on the PEBT Benefits Enrolment Form.

The proceeds of Life insurance and/or Accidental Death insurance in the event of your death will be paid in accordance with your Will, or if you do not have a Will, in accordance with the laws of intestacy of the province in which you reside.

As a general rule, payments to designated persons, such as the spouse or children of legal age, or children with an appointed trustee, are available more promptly as there is no need for Probated Wills or other title documentation.

Important Information about Incompetent Beneficiaries

If it is found that a beneficiary is not able, due to physical or mental incapacity, to complete the documents necessary to claim the proceeds of a policy to which they are entitled, there are several alternatives:

Physical Incapacity

A person who is blind, paralyzed or otherwise incapacitated due to illness or age may be physically unable to read or to sign claim documents. In such cases, special witnessing procedures are necessary to ensure that the person understands the significance of the papers being signed and the situation should be discussed with the provider.

If a Power of Attorney has been granted to another person, the provider will deal with that person, provided sufficient and proper authority is contained in the document.

Mental Incapacity – Guardian

It is customary for a mentally incapacitated person to have a guardian (curator, committee, conservator) appointed to look after the individual, the individual’s property or both. A court must appoint a guardian on application by family members, friends, etc. A guardian may be a spouse, relative or other responsible adult or a corporation such as a Trust Company.

Most jurisdictions have facilities for appointing a government official (Public Trustee, Public Curator) as a committee for an incompetent person, should no other person be qualified or able to assume the responsibility of guardian. In some provinces, the Public Trustee or similar official may automatically become a committee of an individual committed to a hospital.

Proof of Appointment

A certified copy of the court order appointing a guardian must be submitted, except if a Public Trustee or Public Curator is acting, in which case only a letter from him stating this will be obtained.

Powers of Guardian

In general, the powers of a guardian are limited to acts of administration and conservation of the property of the incompetent person. In response to a claim, the guardian will normally sign the Claimant’s Statement and be the payee for the proceeds. The guardian may elect an optional settlement in lieu of a lump sum payment of the proceeds.

A guardian must always show his capacity after or below the signature on any document (i.e. “as guardian for…”)

Exceptions

Exceptions to established procedures can be made where individual cases (generally very small amounts) are discussed with the Insurer with full details of the situation.