Protected when beneficiary is:
- A preferred beneficiary class member: spouse, child, grandchild, or parent
- Named as irrevocable beneficiary (strongest protection; owner loses right to change)
NOT protected when:
- Estate is named as beneficiary (or no beneficiary is named)
- Transfer was a fraudulent conveyance (made to defeat known creditors)
- Creditor is the CRA (Crown tax debts override provincial insurance exemptions)
- Transfer subject to Bankruptcy and Insolvency Act review period