Muslims In Singapore Can Now Use Revocable Nomination For Their Insurance Policies….

Sun, Mar 25, 2012

Insurance, Miscellaneous

Alhamdulillah…. MUIS has issued a FATWA allowing Muslims to use revocable nomination for their insurance policies.

(Myself and my client interviewed by BERITASuria, Malay news channel, few days ago. Click the link to view video)

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This new fatwa, is a fatwa that has been much welcome by the Muslim community who owns  insurance policies in Singapore .

The fatwa will affect all Muslims who have an insurance policy with insurance companies in Singapore with effect from Sept 2009. This is because since Sept 2009, Muslims can only use irrevocable nomination for their insurance policies and there are many limitations to it.

This fatwa does not affect policy taken before Sept 2009.

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 Before : Can only make Irrevocable nomination.

When a policyholder does an irrevocable nomination, he will automatically gives up right of the policy to nominees. He cannot take a loan on the policy without the approval of the nominee and worst still if there are more than 1 nominee.

As he has given out his right, the maturity of his insurance policy will also not be his but belongs to the nominee(s).

If he is single, he will face problem as he cannot  nominates his parents, as stated in the form only nomination of spouse or children are allowed.

If he is married, he cannot change his nominees on his own accord. He needs to seek permission from his nominee(s). Things get complicated, if husband and wife faced marital problems and then divorced.

For policies with critical illness coverage, should he make a claim due to diagnosis of any of the illness, the claim proceeds will be payable to the nominee. Though the nominee can give back to the policyholder, but why can’t it be paid directly to him. At the state that he is in, it seems like he has to beg for it. What if..what if..the nominee are not ‘trustworthy’?

 

Now : with revocable nomination.

Alhamdulillah, now with revocable nomination, he is free to nominate anyone he wants. There is no need to go through the emotional trauma of ‘not trustworthy nominee’ as he can change the nomination without the nominee approval, in the future.

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On a sidenote, if you have a portfolio of insurance policies, endowment, annuity, or investment linked policies with your insurance companies, and you need help to do revocable nomination, you can call always call me for assistance. I will be very happy to help you. Insya’Allah… 🙂

 

p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…

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This post was written by:

- who has written 440 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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