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

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

Takaful - Legal Perspective Of Insurance In Islamic

 

Legal Perspective Of Insurance In Islamic

The legal stand of the Islamic community on insurance should be noted before incorporating the product in the risk management plan of a Muslim.

The key question would be whether life insurance is haram or illegal under Islamic law as parched in the country. This is an important factor, as Muslims are not allowed to participate in schemes that are considered haram to the religion.

As a concept, insurance is not considered haram under Islamic law. In fact, Muslim scholars have pointed out element of insurance existed in Muslim society practices even during ancient times.

Life insurance is a good example. The essential of Life insurance are comparable to the system of mutual assistance in relation to the Arab tribal custom of blood money, Muslim jurists recognized that the basics of shared responsibility in the system of ‘aqila’ as practiced between Muslims of Mecca (Muhajirin)and Meding (ansar) laid the foundation of mutual Insurance.

The generally accepted views of the Muslim jurists that conforms to the rule and requirements of the Syariah as it embodies the following three elements;

1. Al-Gharar –unknown or uncertain factors
2. Al-Maisir- gambling
3. Al-Riba-interest

Muslim jurists has developed a system of insurance which fall within the ambit of Islamic setting of insurance on the concept of al-Takaful.

 

Early History

The establishment of Islamic Insurances is generally considered to be in the early second country of Islamic era when Muslim Arabs began to expand their commercial dealings to India, Malaya and other countries in Asia. (Ref:Malaysian Financial Planning Council)

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 013-322 8582

Notes: Reference have been made from MII and Gela

 

TAKAFUL- The Concept

“Why it can pay to buy now not later! Your health”

TAKAFUL

The Concept Of Takaful

The term takaful means joint guarantee in the Arabic language The takaful concept can thus be described as a covenant among a group of members or participants who agree to jointly protect themselves against financial related losses. A fund is created through the contributions made by the participants, and is used for compensating members who suffered losses due to occurrence of disastrous or catastrophic events. The suffering members will receive a certain sum of money or benefit from the fund as a form of relief as earlier agreed upon by the group of contributors .From the above description, we can get the notion that the fundamental objective of Takaful is to compensate predefined losses of members from a predetermined fund, it can be observed that this practice differs from convention / insurance of which the compensation payment and the fund are not predetermined. The Muslims consider takaful as a means through which members of the group pool effort to support each other in times of trouble. This type of insurance is thus allowed for Muslim as it falls within Islamic practices.

(Ref:Malaysian Financial Planning Council)

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 013-322 8582

Notes: Reference have been made from MII and Gela

Health Warranty

Health Warranty

This is a very important document. It is use when your policy have lapses and you need to revised the policy due to not paying the payment (premium) on time.

When you fill up this form make sure you are telling the truth and you have read this form before you put your signature on it .

I will advice you to read it properly don't care who ask you to sign it.

Please don't trust anyone because it is you who will face the problem years later.

The person who ask you to sign this form may not have read it, he/she can be your agent or the insured company customer service.  Sometime as human we forget the backfire of signing it without really understanding . By signing this it is like you are buying a new policy.

To revised your policy you must sign it . What you write in it is very important as years latter if you have not declare about your work ,health problem you will be in trouble, anything which bring risk to you it can even be your risky sports or hobbies, so please read it before you sign it.

WARNING

If you are having hypertension (High blood Presser),Diabetic or taking any kind of medication or having any other health problem make sure your policy don't lapsed .

If you have a medical card or any other medical benefits  attach to your policy it will be decline or high loading will be imposed.  

A True Story

Madam Rose  bought a policy in 2001 her policy lapsed on 11^th September 2011, She revised the policy on 12 November 2011 and sign a Health Warranty. In June 2013 she was diagnosed breast cancer and her left breast was removed in November 2013.

She made an Insurance claim and after all the medical reports her medical claim was reject and her policy was cancel .

Why This Happen

In October 2010 Rose was diagnosis with High blood pressure and diabetic. Rose have gone to the insured office with her son to revised her policy .

Her son had fill up the Health Warranty form without asking the mother about her health , the customer service officer have not advice Madam Rosy about the backfire she will received if she is not careful.

Now whom to blame for this?

As you are responsible to disclose everything before you sign any form.

How often do you read everything before signing any document. It can even be your agent who ask you to sign it, as a human he can also make a mistake.

The best thing is try not to lapsed your policy.

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 013-322 8582

Notes: Reference have been made from MII and Gela

WHICH COMPANY TO USE

 

 

“UNLESS YOU HAVE RICH RELATIVES, THE ONLY MONEY YOU

WILL HAVE AT RETIREMENT AGE IS THE MONEY YOU DON’T SPEND NOW”

 

WHICH COMPANY TO USE 

 

When choosing your insurance companies consider some of the following:

• Is it financially stable and has the best quality of service?
• What is the quality rating of the insurance company?
• Paying ability, financial strength, asset etc….
• Will it provide insurance coverage based on your needs?
• Consider the company’s record for claim refusal.
• Are you happy with the Agent?
• See the reputation of the company.
• How old is the company.

The bigger the company is the higher the returns you may get. Because the more money a company has the more they can invest and the higher the returns / dividends you may get.

“Why it can pay to buy now not later! Your health”

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 013-322 8582

Notes: Reference have been made from MII and Gela