In Canada, “vesting” is mainly a pension term: it’s the point at which a plan member becomes entitled to their pension benefits, including the employer’s contributions, even if they leave the employer. When that happens is set by the pension law that applies to the plan.
Creditor protection and estate planning: In Canada, life insurance policies and segregated fund contracts may be protected from the owner’s creditors, depending on who is named as beneficiary (for example a spouse, child, grandchild or parent, or an irrevocable beneficiary) and under specific conditions. Additionally, these assets can be passed directly to named beneficiaries, bypassing probate and potentially offering tax advantages.