How Important To Making A Nomination To Your Insurance Policy ?

When you purchase a life insurance policy, your main concern would be to ensure that your loved one are always well provided for. However, if the unexpected should happen to you, it is likely that your loved ones will need funds as soon as possible to cover legal, medical and other expenses, on top of their regular bills and loan repayments.

This is where an insurance policy will be most useful to them. With a policy, you can ensure that they receive the monies due quickly -provided that you have named them as nominees.

Failure to make a nomination means the insurance company wouldn’t be able to make payment until a court has given your loved ones a Grant of Probate (where there is a will) or Letters of Administration (where there is no will). They could wait years as a result.

On the other hand, if you are a non-Muslim and you have nominated your spouse, child or parent (where there is no surviving spouse or child), they are entitled to the policy monies without having to wait for the Grant.

Moreover, a trust policy would be created for them under which these monies do not form part of your estate. As such, they are not subject to your estate’s debts. This means your spouse, child or parent will receive the sum due in full. A trust policy does not apply in the case of a Muslim policyholder, in which case the nominee acts as an executor and must distribute the policy monies accordingly to Islamic Law.

Making a nomination is really quite simple, yet can save your loved ones a lot of unnecessary hardship. Your insurance agent will be happy to help you make a nomination. Do leave your comment if you got any of inquiry or question, and i will reply back to you soon.