To whom will Baheya’s death benefit be paid?

Zaid married Baheya five years ago in Montreal. A year later, Zaid purchased two individual term-life insurance policies, one on his life and the second on Baheya’s life, each with a death benefit of $250,000. The marriage didn’t last long and the couple divorced shortly thereafter. Baheya went on to marry Omar, and the new couple had a baby together, named Darwish.

Last week, Baheya died in a car accident. While settling her estate, Omar discovered that no beneficiary was designated on Baheya’s life insurance policy.

To whom will Baheya’s death benefit be paid?
A . Zaid
B . Omar
C . Darwish
D . Baheya’s succession

View Answer

Answer: A

Explanation:

Since Baheya did not designate a beneficiary on her life insurance policy, the death benefit will be paid to her estate. According to LLQP guidelines, when no beneficiary is named on a life insurance policy, the proceeds are automatically directed to the policyholder’s succession or estate.

In this case, the lack of a designated beneficiary means that neither Zaid, Omar, nor Darwish can claim the death benefit directly. Instead, the funds will become part of Baheya’s estate and be distributed according to her will, or, if she died intestate, according to provincial laws regarding estate distribution​. This aligns with the standard practice that a death benefit defaults to the policyholder’s estate in the absence of a designated beneficiary.