When you purchase life insurance, ensuring that your loved ones receive the payout as intended is critical. However, the smooth distribution of the payout depends on the type of nomination you choose. Let’s explore the different types of nominations and how they affect the distribution of your insurance payout.
Making a Nomination in Malaysia
The purpose of life insurance is to provide financial protection to your loved ones. If you fail to make a nomination in your insurance policy, your insurance company will not be obliged to release the policy funds until your family obtains:
- A Grant of Probate (if there is a will), or
- A Letter of Administration (if there is no will).
This legal process can take several months or even years, causing significant delays in providing financial support to your family when they need it most.
Benefits of Making a Nomination:
- Faster Payout: Policy funds can be released without the need for probate or administration orders.
- Reduced Costs: Legal fees and court filing fees for Grant of Probate or Letter of Administration can be avoided.
- Certainty: The insurance company knows who should receive the payout, reducing family disputes.
Types of Nominations in Malaysia
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Trust Nomination
- For Married Policy Owners: A trust nomination applies if the nominee is the spouse or children.
- For Single Policy Owners: A trust nomination applies if the nominee is the parent.
In both cases:
- The funds do not form part of the deceased’s estate and will be distributed outside the estate administration process.
- The payout is protected from creditors, provided the policy was taken out in good faith.
- No need for Grant of Probate or Letter of Administration for the payout to be disbursed.
-
Non-Trust Nomination
For nominees who are not immediate family members, such as siblings, friends, or other relatives, the nomination is treated as a non-trust nomination. In this case, the nominees:
- Will receive the payout as administrators of the insurance funds.
- Must distribute the funds according to Distribution Act 1958.
Common Issues Even with a Trust Nomination
Even if you make a trust nomination, complications can still arise:
-
Mismanagement of Funds
- Young or financially inexperienced beneficiaries may misuse a large lump sum of money, putting their financial future at risk.
- Sudden wealth can also lead to poor decision-making or financial exploitation by others.
-
Family Disputes
- Family disputes may arise if multiple members feel entitled to the insurance payout or question the legitimacy of the nomination.
- Family disputes can lead to court proceedings, further delaying the release of funds.
-
Minors as Beneficiaries
- If the beneficiary is a minor (under 18 years old), the payout may be held by the surviving parent or trustee until the minor reaches legal adulthood.
- If there is no surviving parent, Amanah Raya Berhad will automatically act as the trustee for the funds.
For more details, refer to our previous article: My EPF and Insurance Nominee is a Minor – Can They Access the Funds?
Why You Should Consider an Insurance Trust?
An insurance trust can help overcome these potential issues by providing clear instructions for how the insurance payout should be used. You can specify conditions for how and when the funds should be distributed. Benefits include:
- Controlled Distributions: You can stagger payments over time or link payouts to specific milestones, such as reaching a certain age or completing education.
- Protection for Minors: Funds for minor beneficiaries can be managed until they are financially mature.
- Reduced Family Disputes: Clear instructions help minimize misunderstandings and disputes among family members
For more details, refer to our previous article: What is an Insurance Trust? Do I Need One?
How to Ensure a Smooth Payout for Your Beneficiaries?
To make sure your insurance payout goes to your intended beneficiaries without delays:
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Make the Right Type of Nomination
- Consider a trust nomination for immediate family members to avoid delays.
- For non-family members or more complex distribution needs, set up an insurance trust.
-
Keep Your Nominations Updated
- Life events such as marriage, divorce, the birth of a child, or the death of a nominee may require updates to your policy nomination.
- Failure to update your nomination could lead to the wrong person receiving the payout.
-
Work with a Professional Estate Planner
- An estate planner can help ensure that your nominations and insurance trust are properly structured.
- They can also provide advice on reducing disputes and delays in the event of your passing.
Making the right type of nomination is essential to ensure that your insurance payout goes to your intended beneficiaries without delays. Whether you choose a trust nomination or an insurance trust, careful planning ensures that the payout is used as intended to secure your loved ones’ future.
You may make an appointment with our legal advisor here: https://calendly.com/finex-and-co-legacy-advisory/tea-talk-with-legalexpert
你的保险金真的会到你指定的受益人手上吗？
买了人寿保险，大家最担心的就是万一出了事，赔偿金会不会顺利地给到家人。不过，要不要顺利拿到赔偿金，其实取决于你怎么做“指定”。一起来看看有哪些不同的指定方式吧！
在马来西亚如何做保险指定(nomination)？
人寿保险的目的是在你不在的时候，帮你保护家人的经济生活。如果你没有在保险单上指定受益人，保险公司是不会直接把钱给家人的，家人需要去申请：
- 遗嘱认证书Grant of Probate（如果有立遗嘱）
- Letter of Administration（如果没有立遗嘱）
这个过程可能会花上几个月甚至几年，家人最需要经济支持的时候却拿不到钱。
提前指定受益人的好处：
- 更快拿到赔偿金：不需要申请遗嘱认证书。
- 省钱：可以省下遗嘱认证书的律师费和法庭费用。
- 更明确：保险公司清楚谁应该拿到赔偿金，减少家庭争议。
马来西亚的保险指定有两种：
-
信托指定 Trust Nomination
- 已婚保单持有人：如果受益人是配偶或子女，那就是Trust Nomination。
- 单身保单持有人：如果受益人是父母，那也是Trust Nomination。
信托指定：
- 赔偿金不属于遗产的一部分，可以不经过遗产分配程序。
- 赔偿金不会被债主追讨（前提是保险是合法买的）。
- 不需要遗嘱认证书就可以发放赔偿金。
2. 非信托指定 Non-Trust Nomination
如果你指定的受益人不是直系亲属，比如兄弟姐妹、朋友或其他亲戚，就属于“非信托指定”。非信托指定的情况是这样的：
- 受益人只是“保险金管理员”，不是直接拥有者。
- 他们必须按照《1958年分配法》(Distribution Act 1958) 来分配赔偿金。
即使有信托指定，也可能遇到的问题
就算有信托指定，还是有可能碰到一些麻烦：
-
资金管理不善
- 年纪轻或缺少理财经验的受益人，可能会乱花一大笔钱，影响未来生活。
- 突然拿到一大笔钱，容易做出不理智的决定，甚至被别人利用。
-
家庭争议
- 如果家里有多个成员觉得自己也有权拿到保险金，或者怀疑指定不合法，争议就会出现。
- 家庭纠纷可能会闹上法庭，进一步拖延赔偿金发放。
-
受益人是未成年人
- 如果受益人是未成年（18岁以下），赔偿金会暂时由还活着的父母或信托人管理，直到未成年人成年。
- 如果没有生存的父母，Amanah Raya Berhad会自动作为信托人管理资金。（更多详情可以看我们之前的文章：《我的EPF和保险提名人是未成年人——他们能拿到这些钱吗？》）
为什么要考虑保险信托？
保险信托可以帮你更清楚地说明赔偿金的用途，避免很多问题。你可以指定什么时候、怎么分配这些钱。
- 分期发放：可以把赔偿金分阶段发放，比如受益人达到一定年龄或者完成学业时发放。
- 保护未成年受益人：未成年人的资金可以由信托人管理，直到他们有经济管理能力。
- 减少家庭纠纷：明确的说明可以减少家人的误解和争议。
更多详情可以参考我们之前的文章：《什么是保险信托？我需要设立保险信托吗？》
如何确保赔偿金顺利到你指定的人手上？
想确保你的保险金顺利发放，记住这几点：
-
选对指定方式
- 直系亲属用信托指定，避免赔偿金发放被拖延。
- 如果是非亲属，或者想要更复杂的分配方式，考虑设立保险信托。
2. 随时更新指定信息
- 结婚、离婚、生小孩、受益人过世等重大事件后，记得更新指定。
- 不更新的话，可能会让不该拿到的人拿走赔偿金。
3. 找专业资产规划师
- 专业的遗产规划师可以帮你确保指定方式和保险信托的结构是合理的。
- 他们还能给你建议，帮你减少未来的争议和发放延误。
