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Monday, February 15, 2010

New Framework for Nomination of Insurance Nominees takes effect September 1, 2009

The Insurance Nomination Law, which came into effect on 1 September under the Insurance Act, gives policyholders two options when nominating a beneficiary or beneficiaries under their life or, accident and health insurance policy.

Under the new law, policyholders of policies that are effected on their own lives and which pay a death benefit can choose from two options: Make a trust nomination, or a revocable nomination.

With a trust nomination, the policyholder relinquishes all rights to the policy, and can only regain it with the consent of all nominees.

With a revocable nomination, the policyholder retains the ability to unilaterally change, add or remove nominees.

But then what's the default option? I shall seek an answer to it by end of this week.

From the Life Insurance Association, Singapore website:
  • LIA Media Release (7 Sep 09) [via]
  • Your Guide to the Nomination of Insurance Nominees 2009 (English) [via]
  • Your Guide to the Nomination of Insurance Nominees 2009 (Chinese) [via]
  • Insurance (Nomination of Beneficiaries) Regulations 2009 [via]

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