Let’s start with the basics, what is nomination?
In the insurance world, nomination is the process of naming the beneficiaries of your insurance policy.
In the case of life or accidental death insurance, the persons you nominate will receive the sum assured upon your death.
Why is it important to nominate?
If you do not nominate, there will be a delay in paying out the sum assured to your family. Insurance companies will normally wait until they receive the official Grant of Probate or Letter of Administration or Distribution Order before paying the proceeds.
Obtaining these can take several years, and your loved ones will have to go through a lot of legal hassle. By making a nomination, the probate/administration/distribution documents are not needed by the insurance company and the sum assured can be disbursed quickly.
Additionally, a nomination enables you to decide on the share of each nominee. For example, you can allocate half of insurance proceeds to your surviving spouse, and a quarter each to your 2 children. Or allocate a percentage to each of your surviving parents since you're no longer around to support them.
For Muslim policy-holders, please note that nominations do not take precedence over Faraid laws of distribution. However, the person you nominate will be responsible for distributing the sum assured according to Faraid laws. So you should still nominate so that your insurer can identify your executor and the distribution process will be that much quicker.
How to nominate?
Nomination is usually done either during the enrollment process or after (once your policy has been issued), depending on the insurer. Your insurance company would either present you with an online nomination form, or a physical form, where you will be required to fill up details of your nominees such as name, date of birth, NRIC/Passport number, their shares and their relationship with you.
Once you have submitted your nomination form, a final step we advise is to call your insurer to confirm that they have registered your nominees.
|
For Fi Life’s Term Life Policy Holders The ‘Nomination & Trust Form’ is attached together with the policy document you received upon purchase. If you haven’t done so, please print out pages of this form, fill up all the required details, get a witness to sign alongside you, and mail it to Tokio Marine Life Insurance Malaysia: Attn: Customer Service Department You can also drop off the form at the nearest Tokio Marine branch.
For Fi Life’s Medical Insurance Policy Holders Nomination for your ‘Accidental Death’ benefits is done during the enrollment process online. You may refer to the policy document you received upon purchase to see details of nominee(s) that you have submitted. |
TLDR;
Let’s face it, you buy insurance in the first place to protect yourself and your loved ones financially - and in the event of your death, you would obviously want your loved ones to receive the payout quickly without any hassles. That's exactly why it’s important for you to nominate your beneficiaries, and we strongly urge you to do so if you haven’t already.
Note: If you have done your nomination, great! If unsure, please check.