Life Insurance After Divorce in BC: What to Check

Maria and Jun have been separated for about four months. They've worked out a rough parenting schedule for their two kids in Burnaby, the condo is listed, and Jun just sent over his draft of the child support numbers. Then Maria's sister asks a simple question over dinner: "Who's still the beneficiary on Jun's life insurance?" Nobody at the table knows.

That question comes up a lot when families separate. Life insurance tends to get set up once, often right after a wedding or a new baby, and then it sits in a drawer. When a relationship ends, the policy doesn't update itself. Here's what BC's actual laws say about life insurance after a separation or divorce, and where the answer depends on your own situation.

Your beneficiary designation probably hasn't changed

Under BC's Insurance Act, section 59, the person insured can name a beneficiary in the contract or by a declaration, and "may alter or revoke the designation by a declaration," subject to the rules for irrevocable beneficiaries. In plain terms: the policy pays whoever is named on file with the insurer.

Separation doesn't rewrite that form for you. The Justice Education Society's Family Law in BC guide is blunt about it: "If you don't remove your spouse as a beneficiary, they may receive benefits upon your death even though you separated." It suggests checking the beneficiaries on your insurance policies, CPP, workplace pensions, RRSPs, RRIFs, TFSAs and your will.

People are often surprised by this because BC does have an automatic rule for wills. Under section 56 of the Wills, Estates and Succession Act (WESA), a gift to a spouse in your will is revoked once you "cease to be spouses," unless the will shows a contrary intention. For married couples, WESA section 2(2) ties that to the event that gives rise to an interest in family property under the Family Law Act. For a marriage-like relationship, it's when one or both people end the relationship.

That rule is about gifts in a will. The beneficiary sections of the Insurance Act I reviewed don't contain a matching automatic revocation for a designation you made directly on the policy or by a declaration filed with the insurer. So don't assume the will rule covers your insurance. Check the policy itself.

Revocable vs irrevocable: why the wording matters

Most people name a revocable beneficiary, which you can change on your own with the insurer's form. An irrevocable beneficiary is different.

Under Insurance Act section 60, if you designated someone irrevocably in the contract or in a declaration filed with the insurer, then while that beneficiary is living you "may not alter or revoke the designation without the consent of the beneficiary." The same section says the money in that case isn't subject to your control or your creditors' claims and doesn't form part of your estate.

There's a catch worth knowing. Section 60(2) says that if you try to make someone irrevocable in a will, or in a declaration that isn't filed with the insurer as required, it's treated as if you hadn't made it irrevocable at all.

If your ex is named irrevocably and won't consent to a change, that's a legal question, not a paperwork one. The Family Law in BC guide recommends speaking to a lawyer in that situation.

When a court can require you to keep life insurance

Here's the part that cuts the other way. Sometimes you can't just take your ex off the policy, because the policy is meant to protect support.

BC's Family Law Act, section 170 lists what a court may include in an order for child support or spousal support. One option, in section 170(e), is that a person who has a life insurance contract:

• designate their spouse or child as a beneficiary, "irrevocably or for the period designated by the court," and
• either pay all the premiums, or authorize the spouse to pay them and compensate the spouse for doing so.

The logic is simple. If the parent paying child support dies, the payments can stop just when the kids still need them. Life insurance is one way to make sure that money is still there.

The same section also lets a court order that a support duty continues after death as a debt of the estate (section 170(g)). Under section 171, before making that order the court must consider whether the person receiving support has a significant need likely to continue after the payor's death, whether the estate is sufficient after other claims, and whether "no other practical means exist" to meet that need. A life insurance policy is one of those practical means, which is part of why it shows up so often in separation agreements.

A practical checklist after you separate

If you're separating somewhere in Metro Vancouver, from Coquitlam to New Westminster, these steps keep things clear:

• Write down your separation date. Family Law in BC notes that this date matters for family property and debt.
• Gather every policy. Include individual policies, workplace group life, and any critical illness coverage with a named beneficiary. Make copies.
• Ask each insurer who's on file and whether the designation is revocable or irrevocable.
• Check your separation agreement or court order before you change anything. If it requires you to keep coverage for your ex or your kids, changing the beneficiary could put you in breach.
• Watch workplace coverage. Under Insurance Act section 59(5) and (6), when one group policy replaces another, the old designation can be carried forward, and your certificate should tell you to review it. An old form can quietly follow you.
• Think about how money reaches young children. A minor can't simply receive a large payout directly, so talk to a lawyer about a trustee or trust arrangement.
• Update your will at the same time, so your insurance and your estate plan point the same way.

It's also a good moment to look at your registered accounts. The Family Law in BC guide lists RRSPs, RRIFs and TFSAs alongside insurance as places to review beneficiaries. Dividing an RRSP can have tax effects, and that guide suggests getting legal advice first.

How much coverage, and for how long?

This is where it gets personal. A court order or agreement might name a specific amount and time period. Often the coverage is meant to roughly match the support that would still be owed, and it may step down as kids grow up or support ends.

You might be the one paying for it, or you might be the one who needs the protection. Some people keep an existing policy and change the beneficiary to the children's trust. Others buy a new term policy sized to the support period. Health, age, and what's already in place all change the answer, and an independent broker can compare options across insurers rather than just one company's products.

What this doesn't tell you

I want to be honest about the limits here:

• I've summarised statute text, not case law. How BC courts apply sections 170 and 171 in real cases depends on facts this article can't know.
• Will designations are a grey area. If your beneficiary was named in your will rather than on the policy, the interaction between WESA section 56 and Insurance Act section 61 isn't something I'd guess at. Ask a lawyer.
• Your policy wording governs. Section 59(4) lets an insurer restrict designation rights in the contract, so read yours.
• Pensions, CPP and registered plans have their own rules. This post focuses on life insurance.
• Separation agreements vary widely. What you agreed to, or what a judge ordered, comes first.

This article summarises published BC legislation and public legal information for general purposes, is current as of October 6, 2026, and is not personalized financial, tax or legal advice.

Sources

• Province of British Columbia, *Insurance Act*, RSBC 2012, c. 1, Part 3, sections 59 to 61 (BC Laws, accessed 2026). https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/12001_03
• Province of British Columbia, *Family Law Act*, SBC 2011, c. 25, Part 7, sections 170 and 171 (BC Laws, accessed 2026). https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/11025_07
• Province of British Columbia, *Wills, Estates and Succession Act*, SBC 2009, c. 13, sections 2 and 56 (BC Laws, accessed 2026). https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/09013_01
• Justice Education Society, Family Law in BC, "Protecting yourself financially after you separate" (updated August 18, 2026). https://www.familylawinbc.ca/finances-support/property-debt/protecting-yourself-financially-after-you-separate
• Province of British Columbia, "Separation and divorce" (gov.bc.ca, 2025). https://www2.gov.bc.ca/gov/content/life-events/divorce

Let's talk it through

Separation is hard enough without wondering whether your coverage still protects the people you meant it to. If you'd like a second set of eyes on your policies, or need coverage that fits a support agreement, book a free, no-pressure call with Milo. He works with families across Burnaby and Vancouver, compares Canada's major insurers, and is happy to talk in English or Tagalog.