Hi,

Anyone can help to clarify and verify?

I have a very bad experience when dealing with the Insurance Customer Service today.

If you are the insurance policy owner, do you know and understand what you have signed?
Perhaps you need to check further with your insurance agents.

1) What is the difference between trustee vs nominee vs beneficiary?
Which keywords you saw in your insurance policy?


2) If you are the insurance policy owner, do you have the full authority to surrender, revoke, renominate, withdrawing cash value and etc, based on your own will?

YOU WILL BE VERY SURPRISE!!!!!!

Your trustee or nominee have to authorize you even you are OWNER OF THE POLICY.

It is very UNFAIR clause to policy owner in the insurance policy


Anyone have such experience??? or mind to share more? or be aware of it?

Yar yar darn unfair... pay money and yet have no say. Stupid hor!

Blame the F3cK1ng Financial Services Act 2013. Blame all the stooooopid MPs that sign the bill into power.

There was a time when it wasn't like this.

Xuzen

Yeap these are all amended under the FSA 2013.

If you want to skip all these problematic keywords, you may opt for Takaful policy.

So it is applied to a particular Insurance company only or to whole Finance industry?
How come we as consumer/customer doesn't be aware on this? Never seen it published publicly.

What is the most prudent approach to act on this if you sit in my shoes?

Takaful policy?

What differences with our insurance policy and Takaful which we purchase now?
Please share more.

sorry for the bad experience you had. and yea it applies to insurance industry.

Nominee is the person who will receive the money should you die. However, whether the nominee can use the insurance proceeds very much depends on your relationship with the nominee.

If you are not married, your parents is your legal beneficiary. If your nominee is your parents, then your parents can use the death claim proceeds. If your nominee is not your parents, then he or she can only act as an executor who temporarily manages the money instead having the legal right to use the money.

If you are married, your spouse and your children (in that order) are your legal beneficiaries. If you nominate them in your policy, then they can use the death claim proceeds. If your nominee is not your spouse or children, then he or she can only act as an executor who manages the money (settling debt, taxes, etc) before distributing it to your legal beneficiaries.

In the event of non-nomination, the distribution of insurance proceeds will be according your your will or according to the Distribution Act if you die without leaving a will.

Its a fair clause, just that you are not aware of it does not mean its UNFAIR.

This post has been edited by Colaboy: Dec 5 2017, 06:59 PM

It is a NIGHTMARE.
Who is the genius that propose such things? Based on what merit and research in depth which has been done to get it implemented?

POLICY OWNER pay the premium with their sweat and blood hard earned money and they cannot execute their will on the policy. What is the rational sense on it?

What if the trustee RIP already or be away for long holiday or have a bad relationship already?

OWNER of insurance policy is controlled by the trustee now.
What the prudent approach we can take? Converting it to takeful type insurance or to surrender it?

I believed many insurance policy owner does not be aware on the implications on themselves. How come the insurance company didn't update the insurance policy holders for the implications ? What the hidden agenda on it?

Do you guys receive the Letter which is sent out by the Insurance company for such changes on this part?

What if the policy is purchased before 30June 2013? Do they still need the trustee consent to make the changes on it?

I started to feel too scary to purchase Insurance products in future. What alternatives do we have?

The situation now, you appointed your spouse or your parent as nominee or trustee for the insurance policy. But when you want to revoke or nominate another person to it, you have to get their written consent. You are the Policy Owner. But, you are controlled by the trustee now.

It is so UNFAIR and IRRATIONAL.

If you sit in that shoes, what you will do? .

to solve your worry, appoint the correct trustee. then create a trust to protect it. if trustee is a neutral party, guess that will take away your worries here.

basically u just need them to sign. of course best is to still put nominee. else, without nomination, write a will/trust and assign the insurance policy into the will/trust. then assign the beneficiary through will.

Your policy may controlled by the trustee, but you are controlling your trustee. What i meant is you may change the trustee if he/she not following your new wish, make sure the new appoint trustee be the right person.
(correct me if i'm wrong).

This post has been edited by laskatcl: Feb 10 2018, 12:34 PM