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Important Points To Remember About Insurance In Malaysia

 

General guidelines about insurance in Malaysia say that when a person dies, all of his or her assets are bound to get frozen. With the presence or without a will, these assets will be turned into assets that can pay off the claim of the creditors and taxes, with the remaining ones distributed between the family members.

 

There is an insurance policy in Malaysia known as the medical insurance proceeds and the employees provident fund and these kids of funds can be directly paid to the nominee or client upon the loss of someone. These have been protected from the issues about claim of creditors eating over the funds, no matter how the bank accounts appear in the views of the person who suffered the losses. It is important to note that insurance terms in Malaysia have always used the two different terms beneficiary and nominee interchangeably. In the concept of the previously mentioned employees provident fund, these are the same and the beneficiary also refers to as the nominee.

 

When it comes to insurances on personal accidents and life insurances, these are two different things. Insurance in Malaysia has provisions and guidelines about the beneficiaries and the nominees. The nominee is considered the client who is bound to receive the money after the death of someone. Nevertheless, whether or not these nominees can be able to use these funds depend on the relationship with the person receiving the funds. How can this be explained? For instance, unmarried individuals will always have their parents as the major legal beneficiary. If the nominees are the parents, then they can use the proceeds from the death claims. However, is parents are not the nominees, they can only act as executing party which has been responsible for managing the finances instead of having the legal right to make use of the finances. To understand more about insurance, visit http://money.cnn.com/pf/money-essentials-life-insurance-policies/index.html.

 

On the other hand, married individuals will automatically have their spouse and their children as their legal beneficiaries about insurances in Malaysia. If you have nominated them in the policy, then they can have the right to claim the death proceeds. However, if the nominees are other than these two, they can be executors and can manage the finances and distribute them to the beneficiaries according to the law. When there is non-nomination, then the distribution of the funds should be according to insurance premium provisions in Malaysia, if people succumb to death without signing a will.

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