She paid the insurance premiums for 13 years, but his new spouse got the payout — until the court intervened
An Ontario woman who paid life insurance premiums for 13 years on a policy on her former husband, only to discover that her ex had made his new spouse the irrevocable beneficiary, will not walk away empty handed.
In a decision released on Nov. 23, 2018 (2018 SCC 52), the Supreme Court of Canada confirmed that a person other than a named beneficiary may be entitled to receive the proceeds from a life insurance policy. In the 7 to 2 decision, the Court overturned the Ontario Court of Appeal’s decision and restored the trial judge’s decision.
Broadly stated, Moore v. Sweet was a contest between two individuals who claimed an entitlement to the $250,000 in proceeds from a life insurance policy. The factual matrix is somewhat unusual, involving two former spouses, Michelle and Lawrence, and Lawrence’s new spouse, Risa.