If you name your estate as beneficiary, the death benefit will become a part of your estate. The funds will be used according to the terms of your will. If you choose this option, keep in mind that the death benefit will be subject to estate administration tax. The estate administration tax is charged on the total value of your estate, including all property, possessions, and financial assets. Creditors may claim the death benefit to pay for any outstanding debts. This could result in your family receiving less money than they would if you named them as beneficiaries.
Easy answer provided by FSCO (Financial Services Commission of Ontario)