TRUST POLICY SECTION 166
INSURANCE ACT 1996.
- 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.
- In the absence of spouse or children, the parents of insured can be named as nominees to create a trust policy.
- 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.
- 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
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