What happens with left over money of Funeral Insurance

There are various Beneficiary Designations :

Contingent Beneficiary: If all the primary beneficiaries pass away before the Life Insured does, then the contingent beneficiary(ies) would become the new primary beneficiary(ies) automatically.

Irrevocable Beneficiary: If a beneficiary designation is irrevocable, the signature of the irrevocable beneficiary is required for any changes, including a change of beneficiary. In Quebec, a designation in favour of a spouse is irrevocable unless specified otherwise.

Per Stirpes: If you wish the descendants of a beneficiary to receive his or her portion of the benefit split equally if the beneficiary should die before the Life Insured, you can name the beneficiaries per stirpes.

Payment to Beneficiaries: Unless you specify otherwise, the Company will pay the death benefit (in one sum or in installments) ,if no beneficiary is then alive to the estate of any beneficiaries who died after the Life Insured; otherwise to the policy owner if other than the Life Insured; otherwise to the policy owner’s estate.

Trusts: If the beneficiary designated is the trustee of an Inter Vivos Trust and if the Company receives proof satisfactory to it that the trust is not in effect when any death benefit is payable, then the Company will pay the death benefit as if the trust beneficiary had died before the Life Insured. If the beneficiary designated is the trustee of a Testamentary Trust, it will be deemed to be the trust which is created under a Last Will and Testament and if, when the death benefit is payable, it is found that the Last Will and Testament contains no trust or is not admitted to Probate or the Life Insured died intestate, then the Company will pay the death benefit as if the trust beneficiary had died before the Life Insured.

Preferred Beneficiary:  If the current beneficiary is preferred, the signature of the beneficiary is only required if the beneficiary is being changed to someone outside the preferred class.This feature is only applicable to policies issued in the Province of Quebec prior to 1977 and prior to 1963 in all the other provinces.