Some people wanted to buy ALL their Life Insurance Policies from ONE Life Insurance Company. Very loyal subjects indeed.
Little do they know that when it comes to a death claim, their next of kin will only be able to receive an advance payment of $150,000 per insurance company without showing the letters of probate or letters of administration. A death certificate is not enough to release all the monies in excess of $150,000 because of Section 61 of the Insurance Act below.
Death Claim – Section 61 of the Insurance Act
This Act allows an insurance company to pay an advance payment up to a maximum of $150,000 of the proceeds after claims admission to the proper claimant named as follows:
Proper Claimant means:
Executor of a Will
Parent or Child
Brother or Sister
Nephew or Niece
The balance proceeds will only be paid after the insurance company receives the Estate Duty Clearance and Letter of Administration/ Probate.
Now you know…
If you intend to insure yourself for $1,000,000, it is best to get it from a few companies instead of just one company. For example, if you insure with 3 companies, your next of kin will receive $150,000 x 3 = $450,000 upfront instead of just $150,000 from just one insurance company.
Remember, letters of probate or administration will take quite a while to get, just ask any lawyer you know.
If you want a hassle free way to get insurance coverage from 3 companies, you must call me as I am able to do it for you. No need for you to look for 3 insurance agents, just call me at 9001-1082.
Have a blessed weekend!
In financial planning, I separate the best from the rest!