Things To Remember When Making A Nomination

So far, we have discussed what happens if a spouse, child or parent is the nominee. But what happens if it is someone else, like uncle, niece or even a friend ?

Under a non Muslim’s policy, the nominee in such a case is not entitled to the policy monies as a beneficiary. He or she only receives them as an executor, and must pass it on to the deceased’s estate to be distributed accordingly to the will.

If the nominee in this case is not named as a beneficiary under your will, he or she will not be entitled to receive even a single sen. If there is no will, then the property will be distributed according to the existing laws of distribution.

The lesson here is that if your intended beneficiary is not a spouse, child or parent, then you must write a will naming that person as a beneficiary. Once you do, your nominee will receive the policy monies subject to the laws of distribution- once all your estate’s debts have been settled.

So, after you have understand what will happen when a nominee if not automatically a beneficiary, few things you must remember when making a nomination.

a) When to nominate ?

At the time of or after application for the policy.

b) Number of nominees ?

You can name more than one nominee, but you should state the proportion to which each person is entitled. otherwise, each receives an equal share.

c) Nomination procedure ?

1) Fill in nomination form :

Provided by your insurance company, it usually requires details of your nominee’s name, date of birth, NRIC no, Birth Certificate no and address.

2) Witness,

The nomination form must be signed by a witness who is 18 years old or above, of sound mind, and who is also not your nominee.

3) Endorsement

Ensure that your insurance company endorses the nomination, either on the policy document or nomination form.

Click to How Important To Making A Nomination To Your Insurance Policy to find out more related information. Cheers