Advertorial Important details about naming the beneficiary of a life insurance policy

[ASEAN NOW Sales]

 

Problems can result after the death of a life insurance policy holder if they fail to name the beneficiary of the said policy. Or if such details are unclear.

 

Companies in this case usually resort to distributing the money to six statutory heirs namely legitimate or legally adopted children, parents, brothers and sisters and half brothers and sisters, grandparents and aunts and uncles.

 

But legal proceedings can follow. And before such proceedings can be resolved monies and property may be used by certain parties taking advantage of the benefit.

 

Relatives who the insurer did not want to benefit may stake a claim.

 

That is why it is always important for pollicy holders to clearly state beneficiaries.

 

Mostly insurers need a beneficiary who is a blood relative or has a legal relationship to them. This is designed to offset the possibility of murder.

 

Strangers therefore cannot normally be named.

 

Thus beneficiaries usually fall into three areas namely spouses and chilren (included those legally adopted), parents and siblings and thirdly more distant blood relatives.

 

Policy holders can specify one or more people. How much each is to receive on their death can also be stated. If it is not stated, they will all receive an equal share.

 

Companies do accept beneficiaries even though a marriage has not been registered. In Thailand that would include same-sex relationships that currently cannot be legally registered.

 

Organizations can also be named as beneficiaries such as charitable groups, foundations or temples.

 

When it comes to names the policy holder must clearly state the correct surname to ensure that legal challenges cannot be made later that may be contrary to the wishes of the policy holder.

 

Any changes to the policy must be legally binding.

 

Claims on life insurance must be made promptly within 14 days in most cases.

 

If people named as beneficiaries die before the policy holder, then the policy holder must name the new beneficiary.

 

If that is not done the money will be distributed according to the heirs mentioned at the head of this article.

 

All of the above show that it is imperative to contact your insurance provider regarding life insurance and beneficiaries.

 

Making things clear in your policy means less problems all round for your relatives left behind.

 

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