CJH Financial Planning

If you own a life insurance policy with death benefit, you may choose your nominees (or beneficiaries) to inherit the insurance proceeds using one of the two types of nominations. ✏️ 𝐑𝐄𝐕𝐎𝐂𝐀𝐁𝐋𝐄 𝐍𝐎𝐌𝐈𝐍𝐀𝐓𝐈𝐎𝐍 (𝐒𝐄𝐂. 𝟒𝟗𝐌) A revocable nomination informs the insurer who to pay the insurance proceeds to, and in what proportion. You may appoint anyone as a nominee, including foreigners or legal entities such as charities, or religious organisations. As the name suggests, it can be "revoked" or terminated anytime that you wish, without permission from nominees. Nominees will only receive the death benefit , while the living benefits belong to the policyowner. Take note that if you make a Will after doing a revocable nomination, it will supersede the instructions in the nomination. ✒️ 𝐓𝐑𝐔𝐒𝐓 𝐍𝐎𝐌𝐈𝐍𝐀𝐓𝐈𝐎𝐍 (𝐒𝐄𝐂. 𝟒𝟗𝐋) A trust nomination serves the same purposes in informing the insurer who to pay to. However, you can only nominate your spouse and/...

This is a follow-up from a post 3 years ago , where I compiled the credit ratings of the life insurers in Singapore, to have an idea of the differences in terms of their credit worthiness. Flawed Assumption People often think that life insurers and the policies they issue are homogeneous (the same), and often compare benefit illustrations as if two companies are going to make the exact same amount of profits, exact same amount of investment returns, have the exact same amount of business operating costs, and et cetera. How far away from the truth that flawed assumption can be.  Every life insurer holds a different asset mix in their insurance funds, and have different profits/returns/costs. Even their shareholders may demand a different dividend rate on their shares. Therefore it is not surprising that life insurers with larger assets and bigger operations in Singapore tend to be the ones rated higher by Standard and Poors (S&P), one of the foremost rating agency in th...