Can I change the benefactor of my insurance policy.

Question

I am a Canadian citizen, I have 5 children and on the verge of divorce. I own a small manufacturing company, my wife, soon to be ex-wife is the benefactor of my insurance policy, can I change it from her name to my children.

Answer 1

Unless your policy is irrevokable, as long as you are the policy owner, you can change the beneficiary clause.

But changing it to your kids won't do any good - because their guardian - your ex wife - would have full access to it, as their guardian.  You need to see an attorney to set up a trust, with someone you trust as the trustee (like a brother or best friend), who can dole out the money for the benefit of the kids, as specified in the trust.

Answer 2

Changing the beneficiary of your insurance policy is easy, just contact their office and ask for the short form to complete.  Remember that if your children are minors at the time you die, unless you have specified that your assets are to be held in trust for the children, the court will probably just hand the money over to their mother to take care of.  If that is not what you want, see a lawyer and get a will set up!