Which of the following statements about beneficiary designations for segregated funds in Canada is generally TRUE?

Question: Which of the following statements about beneficiary designations for segregated funds in Canada is generally TRUE?

Answer options: ✅ A revocable beneficiary designation can be changed by the annuitant at any time without the beneficiary's consent.

• An irrevocable beneficiary designation can be changed by the annuitant with 30 days' written notice to the beneficiary.
• If no beneficiary is designated, segregated fund proceeds avoid probate and are paid directly to the annuitant's estate.
• Provincial Insurance Acts do not distinguish between 'family class' and 'non-family class' beneficiaries for segregated funds.

Correct answer: A revocable beneficiary designation can be changed by the annuitant at any time without the beneficiary's consent.

Explanation: A revocable beneficiary designation grants the contract holder the flexibility to change the beneficiary at any time without needing the consent of the existing beneficiary. This is a key distinction from an irrevocable designation.