Why Buy From Various Life Insurance Companies?

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
Widow/ widower
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!