All About Insurance Nomination

How can you ensure that the insurance proceeds meet your intended purpose?

Insurance nomination is an affordable way to distribute your benefits or profits to your intended beneficiaries after your demise.

Different Insurance Nominations

Irrevocable Nomination

• Lose all ownership and rights of the policy
• The nominee will receive the living and death benefits
• Irrevocable unless there is written consent from all nominees
• Can only nominate spouse and/or children

Revocable Nomination

• Retain ownership and rights of the policy
• The nominee will receive their share of the death proceeds
• Allowed to make changes anytime
• Can nominate anyone

Many of us purchase insurance policies to benefit ourselves during our lifetime and our loved ones after our demise. HOWEVER, most did not think about how they wanted to distribute the insurance proceeds after their passing.

What happens if you have no nomination?

1. No Nomination, NO WILL: The insurance proceeds will be distributed according to the Intestate Succession Act.
2. No Nomination, HAVE WILL: The insurance proceeds may be distributed according to your Will.

What happens if I executed both Will and nomination?

1. Have Will and Irrevocable Nomination: The insurance proceeds will be distributed to the named nominees in the Irrevocable Nomination.
2. Have Will and Revocable Nomination: The insurance proceeds may be paid to the beneficiaries based on the latest properly executed document.

What happens if my nominee predeceases me?

1. Irrevocable Nomination: The insurance proceeds will form part of the deceased nominee's estate.
2. Revocable Nomination: The deceased nominee's share will be aggregated to the surviving nominees' share in proportion to their initial share. The nomination will be revoked if there are no surviving nominees at the time of your demise.