Importance of Making a Nomination

The purpose of having life insurance is to ensure that our loved ones are protected financially should anything happen to us. It is then important that our loved ones can access the funds quickly. 

If we do not make a nomination in our insurance policy, the insurance company is not obligated to release the policy moneys until our loved ones obtain a Grant of Probate or Letter of Administration or Distribution Order, which may take several years.

However, if a nomination is made, the policy moneys can be disbursed much faster without the need to obtain the Grant of Probate or Letter of Administration or Distribution Order.

In addition, in the case of a non-Muslim policy owner, a trust will be created in favour of the nominee under the following circumstances:

• if the nominee is the spouse or child of the policy owner, or
• if the nominee is the policy owner's parent (provided that there is no living spouse or child at the time of such nomination)

When such a trust is created, the policy is known as a trust policy. As a trust policy, the policy moneys payable do not form part of the estate of the deceased policy owner and are not subjected to the deceased policy owner's debts. this ensures that our loved ones get the full amount of the policy moneys payable. However,  this is only applicable if the policy is taken in good faith and with no intention to defraud creditors. 

A trust policy does not apply in the case of a Muslim policy owner. The nominee of a Muslim policy owner takes the policy moneys only as an executor and must distribute the moneys in accordance with Islamic laws.

www.insuranceinfo.com.my

Distribution of Surplus for the Financial Year Ended Nov 2013

Surplus amounting RM 304.90 has been credited into the Participant Investment Fund of policyholder's Certificate.

Hurm...

AIA Public declares RM8.5mil surplus

The Star Online
22 August 2014

KUALA LUMPUR: AIA Public Takaful Bhd (AIA Public) has declared a total surplus distribution of RM8.5mil for the financial year ended Nov 30, 2013, involving more than 36,000 certificates under the company.

The distribution, marking the first surplus since the company's inception three years ago, will benefit eligible customers who have participated in Takaful products offered by AIA AFG Takaful Bhd and ING Public Takaful Ehsan Bhd, which had integrated their businesses in March 2014 to form AIA Public. 

 AIA Public chief executive officer Wan Azman Wan Mamat said the company was committed to offering the right Shariah solution to meet the different stages of a customer's requirement. 
"We are also focused on ensuring all claims are managed properly and in an ethical manner. By doing so, we are pleased to share a surplus with our customers this year," he said in a statement.

The surplus will be distributed to those who are registered as a customer of AIA Public, as at Nov 30, 2013, do not have any outstanding contribution payments and have not made any claims. 

The surplus amount paid will also vary from one customer to another depending on the size of their contribution, amount of coverage and certificate period.

Takaful not only benefits claimants but also takes care of non-claimant customers, who stand to receive a proportionate share of distributable surplus arising from the risk fund at the end of a defined period, said the statement. - Bernama