Importance of Nomination

I had previously written an article on What happen to a person's estate after death and it included a short discription on the Key Difference between a Grant of Probate and Grant of Letters of Adminstration which is mainly the presence of a Will or not. In this short post here, I would like to highlight the importance of doing up nominations.

Doing up an Insurance Nomination

Nomination of Beneficiary (NOB) for insurance is important and below are some key points to note why it is important; 1) With NOB, claim process is faster as there is no need to show Grant of Probate (With a Will) or Letter of Administration (Without a Will) to insurer for claim. 2) With NOB, your beneficiary /beneficiaries will have clarity on the payout amount and percentage allocation. 3) Without NOB, anyone deemed as family member has the right to claim up to $150,000 from the insurer. Hence, giving your rightful beneficiaries the risk of not getting the full rightful payout

You can find out more on insurance nomination here

https://www.lia.org.sg/media/2076/nomination-of-insurance-nominees_english_2019.pdf

Having your Nomination of Beneficiary done right can reduce the hassle of claims payout, it is also not a complicated process to do it, so have you done your nomination yet?

Sources: Life Insurance Association of Singapore

184/19May21

#financialtips #nominations