The Power To Create An Immediate Estate.

 

The Power To Create An Immediate Estate.

 

One of the most powerful aspects of purchasing a life insurance policy is the ability of the insured to create an immediate estate which is legally valid and recognizable in the court of Law.

 

The very act of the insured submitting a signed proposal form with payment of appropriate premiums forms a contract between the insured and the insurer.

 

The insured has to ensure that all relevant premiums are paid throughout the policy period .

 As long as the policy is kept in force and the benefits can be realized at the appropriate time the sum insured become payable upon the insured’s death. An immediate estate is created.

We try to accumulate wealth all our life without realizing that we can do it with just a pen when you sign for a policy.

 

Example

Mr Sam is 28 year a non-smoker will be able to create $100,000 in asset,

before he actually earn it, by signing for a $100,000 policy which he have to save about $3000 per year.

 There is no guarantee Mr Sam will be able to accumulate $100,000 in is life time. But with the policy he is guarantee. 

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 013-322 8582

 

TRUST POLICY SECTION 166 INSURANCE ACT 1996

TRUST POLICY SECTION 166 INSURANCE ACT 1996.

1. A trust policy in favor of a spouse and children is created if any of them is named as a nominee, but the policy money is only payable on death of the policy owner.
2. In the absence of spouse or children, the parents of insured can be named as nominees to create a trust policy.
3. Such policies only apply to non-Muslims, which again differs from section 23 policies. A Muslim nominee will receive the money as an executor and will have to distribute the policy’s proceeds in accordance with Islamic laws.

Key Benefits of a Trust Policy.

• The policy proceeds can be protected from creditors of the insured.
• Faster claims can be made in the event of death
• The proceeds do not form part of the insured’s estate.

4. This is especially very useful to businessmen who have to stand as guarantors for loans made to people with high risk exposure. The answer is to create an “estate” untouchable by creditors both trade and personal of the estate owner. It can bring some comfort and security to the family of the businessman.

Trust policy

A trust policy is created if the policy owner appointed his wife, husband or children if single parents as a trustees or a nominee.

“Proceeds received by these nominees will be granted protection by law from creditor and hence will not be part of the deceased’s estate.”

“No creditor can take this money from your family”

(by law in Malaysia)

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 013-322 8582

Notes: Reference have been made from MII and Gela