Insurance Nomination
Importance of Insurance Nomination
Insurance nomination designates individuals or organisations to receive life insurance payouts directly. With a valid nomination, the proceeds bypass your estate and probate process is a legally binding document that specifies the beneficaries and the payout for each, helping your loved ones access to the funds quicker, avoiding potential disputes.
Difference between Trust and Revocable Nomainations
Why Make an insurance nomination
By making a nomination, you decide exactly who receives your policy proceeds. This gives you full control over the distribution of your insurance benefits, ensuring your intentions are clearly documented and respected.
A clear nomination helps eliminate confusion or disagreements among loved ones. Issues that can arise when no nomination is in place, especially in complex family situations.
Nominated beneficiaries can receive the insurance proceeds quickly and directly, without the need to go through lengthy legal procedures like probate or letters of administration
Frequently Asked Questions
1. Trust Nominations
Only spouse and/or children can be nominated as a beneficiary
2. Revocable Nominations
Any legal entity (i,e. individual association or corporation), including spouse and/or children can be nomindated as a beneficiary
1. Trust Nominations
No. For trust nominations, the policyowner will lose all rights and owenrship of the policy. All proceeds ( living and death benefits) from the policy will belong to the nominees named.
2. Revocable Nominations
Yes. The policyowner will retian full rights and ownership over the policy, and can change or revoke a nomination at any time.
1. Trust Nominations
No. Your policy proceeds will be paid to any on trustee who is not the policyowner or all the beneficiaries who are at least 18 years old. If any of your named nominees is under 18 years old, you will need to obtain written consent from a parent or legal guardian who is not the policyowner.
2. Revocable Nominations
Living Benefits: Policyowner
Death Benefits: Nominee(s)