POLICY NOMINATION VERSUS WILL NOMINATION

POLICY NOMINATION VERSUS WILL NOMINATION

 

Making a nomination in a policy is very important as the family don't have to wait for an LA (letter of administration) to get the policy money. All he need is a death certificate and proof he is the nominee.

There may be cases where the client has nominated a person other than his spouse, children or parents.(In the absence of the spouse and children)to receive the policy moneys and has named someone else as the beneficiary of the policy in a will.

In such a case the act requires that the policy be paid to the nominee named in the policy, but the policy nominee will receive the money as an “executor” and not as a beneficiary.

He is required to pay all the money in his custody to the person who is named in the will as the beneficiary of the policy.

Example

Mr Raj bought a policy and name his brother Sam as nominee. Mr Raj got marriage to Rita he forget to change the nominee to Rita. Mr Raj died in an accident without a will leaving behind 2 children and a wife. Rita can claim the Insurance money by producing Mr Raj death and Marriage certificate. She need to fill the claim form and any other document require by the insured.

On other end Sam as a nominee can bring the death certificate and other document require by the insured to claim the money as a Trustee and have to give all the money back to Rita.

If Mr Raj parent are alive they are entitle to received 1/3 of the money from Rita.

When there is a Will everything become easy.

About the author

Kertar Singh has joint Great Eastern Life Assurance in August 1995 as a part time agent.

Became a full time agent in 2000 after retiring from the army after 22 years.

He deal with all kind of Insurance from Life Insurances to General Insurances and Will Writing.

Kertar.en@gmail.com

H.P:+6013-322 8582