Insurance Trust
Insurance Trust
Provide continuous financial assurance for your loved ones in case of unfortunate events.
What is Insurance Trust?
Life insurance is an important part of financial planning. However, just getting a life insurance is no longer enough to ensure their next-of-kin can manage that inheritance. For many, their life insurance policy is the greatest asset they can provide for their beneficiaries in the event of death or permanent disability. So this is where insurance trust comes into the picture.
An insurance trust is just like any other trust. The trust owns the life insurance policy that you purchased and will collect the death benefit when you pass away, which will then be distributed to your beneficiaries.
Why set up an Insurance Trust?
If you have a small policy of just RM50,000, then it may not sound like a big deal. But imagine this, if you have a huge policy of RM500,000 or more, then it will be an enormous lumpsum for your next-of-kin to inherit. An 18 year-old or a lavish spender of a spouse receiving such a huge windfall will surely be misused or worse-case, completely spent in a span of a few months.
With insurance trust, you can forget those worries. Arranging the trust to continuously pay your family every month or finance your child’s education are all within your power.