PD Question Related to Mil Pensions & SISIP Insurance

[coolintheshade]

Happy New Year to you all! Hope the new years brings us all good health, happiness and prosperity!

I am hoping someone can help me with this question as a professional development. I have no family whatsoever in Canada, and I'm a divorced member with a teenage kid in 1st year high school.

• I have SISIP life insurance coverage
• My older sibling in Europe is on file as the executor of my will (as my kid is a minor)

My questions:
1. If something should happen to me at any time in the future either while on deployment or while out doing one of my hobbies, does my kid get my Mil pension (remember, I have no spouse) and if so for how long, and if not why?????

2. My SISIP insurance, does my kid get anything regardless of the cause of death, where it happened and activity????

3. Is it possible to request a Mil covered cremation sort of funeral (I don't want a burial for costs reasons) via VAC, even when no longer in the service? Funerals are expensive and I don't want my kid to end up later with astronomical funeral costs.

Please advise. I'm the first in my family to join the Mil, and I'm just trying to put stuff down on a paper/in a will, so people don't end up scrambling when I'm no longer around.

Cheers and thank you

 

[dapaterson]

Starting point: Info on CAF pension on the internet at: Canadian Armed Forces Pension - Canada.ca

For pensions, a survivor benefit goes to your spouse. Children receive a partial pension until they reach the age of 18 / while they remain in school up to age 25.

SISIP Insurance coverage covers most but not all causes of death. More info including links to the actual policy document is at: CFMWS - Canadian Forces Morale and Welfare Services There is no exclusion for acts of war (unlike most other forms of life insurance). There are some restrictions to benefits payable in the event of suicide (for example, you must have had SISIP coverage for at least one year, and any increase in coverage must have been in place at least one year for the increase to be payable).

Insurance is payable to the named individual in the policy. If you named a former partner, they remain the beneficiary until you change it.

If insurance is payable to an individual, they receive that amount outside of the probate process, and the amount is not subject to taxes or probate fees. Insurance payable to the estate, however, becomes an estate asset that must go through the probate process - pay out will be delayed, and the amount for distribution per your will (you do have an up to date will, I hope) will be subject to probate fees.

For funerals: Retired members may receive coverage through VAC (https://www.veterans.gc.ca/eng/financial-support/death-and-bereavement/funeral-burial-assistance). Serving CAF members may be covered under QR&O volume I chapter 24 (conditions are explained therein) (QR&O: Volume I - Chapter 24 Casualties and Funerals - Canada.ca), with additional financial details found in CBI chapter 210 (Chapter 210 - Miscellaneous Entitlements and Grants - Canada.ca).

 

[coolintheshade]

Starting point: Info on CAF pension on the internet at: Canadian Armed Forces Pension - Canada.ca

For pensions, a survivor benefit goes to your spouse. Children receive a partial pension until they reach the age of 18 / while they remain in school up to age 25.

SISIP Insurance coverage covers most but not all causes of death. More info including links to the actual policy document is at: CFMWS - Canadian Forces Morale and Welfare Services There is no exclusion for acts of war (unlike most other forms of life insurance). There are some restrictions to benefits payable in the event of suicide (for example, you must have had SISIP coverage for at least one year, and any increase in coverage must have been in place at least one year for the increase to be payable).

Insurance is payable to the named individual in the policy. If you named a former partner, they remain the beneficiary until you change it.

If insurance is payable to an individual, they receive that amount outside of the probate process, and the amount is not subject to taxes or probate fees. Insurance payable to the estate, however, becomes an estate asset that must go through the probate process - pay out will be delayed, and the amount for distribution per your will (you do have an up to date will, I hope) will be subject to probate fees.

For funerals: Retired members may receive coverage through VAC (https://www.veterans.gc.ca/eng/financial-support/death-and-bereavement/funeral-burial-assistance). Serving CAF members may be covered under QR&O volume I chapter 24 (conditions are explained therein) (QR&O: Volume I - Chapter 24 Casualties and Funerals - Canada.ca), with additional financial details found in CBI chapter 210 (Chapter 210 - Miscellaneous Entitlements and Grants - Canada.ca).

Thanks for your response...much appreciated. So I'm guessing once the kid is over 25 and there is no spouse...no pension is paid to my dependent then in the absence of no spouse?

This sucks

 

[dapaterson]

Those are the conditions of the CFSA and its related regulations. More expansive survivor options would likely incur greater member contributions to support. That said, if you remarry before age 60, whether still serving or not, your new spouse is eligible for a survivor's pension.

It is important to confirm with your OR that any changes due to divorce etc are properly reflected - for SDB, pension etc. There have been numerous very awkward situations where ex-spouses have received benefits following the death of a service member, because they failed to update their information.

 

[coolintheshade]

Those are the conditions of the CFSA and its related regulations. More expansive survivor options would likely incur greater member contributions to support. That said, if you remarry before age 60, whether still serving or not, your new spouse is eligible for a survivor's pension.

It is important to confirm with your OR that any changes due to divorce etc are properly reflected - for SDB, pension etc. There have been numerous very awkward situations where ex-spouses have received benefits following the death of a service member, because they failed to update their information.

Ack. I was divorced over a decade ago, not living with anyone i.e. no common law and no intentions to go down that road again. My kid has been my focus and continues to be. I just thought perhaps in the fyure when I'm no longer around, my pension can help the kid in some way.

My Mil file/doc does reflect my marital status and my next of kin as my kid. This apparently is the reason I don't qualify for the 'going home to see your family benefit' once a year trip because I have a kid with me (defined as my next of kin/family even though they're a minor).

As mentioned, I'm choosing cremation because I don't want to leave my kid with heavy debt hanging over them.