Mdm A, a Whole Life insurance holder has contracted stage 4 of a critical illness and has been told that she has 3 months to live. She does not want to place a financial burden on her family. How does she ensure her CPF monies will be inherited by her children/husband, and ensure make an insurance claim?

Making a CPF Nomination

To ensure that her husband and children will inherit her CPF monies, she can log into myCPF online services and login via SingPass, go to “My Request”, and click “Make a CPF Nomination” to nominate her husband and her 16-year-old child. 

There, she will be able to nominate as many nominees as she likes to receive a portion of her CPF monies. In this case, she wishes to transfer divide half of her wealth between her husband, Mr. B, and her children, Children A. She must then appoint 2 witnesses above 21 years old, who will receive a notification in their myCPF account and confirm Mdm A’s intent to nominate within 7 days. After 4 working days, Mdm A will then finally receive a confirmation SMS/email on the status of her completion. She no longer has to worry about losing her CPF monies as her husband will receive a letter to claim their share of the monies from the CPF board at any time. As her child is below the age of 18, his share of the CPF monies will be held by the Public Trustee’s Office (PTO) at a fee until he reaches 18 and be able to claim from the PTO (for PTO’s guide on how to, visit this link).

What if I do not make a CPF nomination?

If you do not make a CPF nomination, your CPF monies will be distributed according to the Intestate Succession Act, as illustrated below.

Making a Life Insurance Claim

Miss A has previously bought a Whole Life Insurance Plan with a Critical Illness rider. To indemnify Mdm A’s medical expenses, she will be able to apply and claim from her insurance company through their website upon diagnosis of a critical illness defined by LIA. Upon her demise, any of her direct kin can apply for a death benefits claim from the insurance company’s website. The death benefit of her policy will be paid according to the Intestate Succession Act (refer to the above illustration), or if a Will is drawn, in accordance to her Will.

She does not wish to award the death benefit solely to Mr. A according to the Intestate Succession Act, but instead, to Mr. B and their child equally. She will be able to do so via nomination by contacting her insurance agent or contacting the insurance agent or proceed to any of their branches to obtain a nomination form with 2 witnesses above the age of 21, at any point in time after the policy commencement date.

At Storeys, we strive to provide our customers with a holistic real estate journey, together with Redbricks Mortgage Advisory we make sure you and your family’s financial needs are well taken care of. Hope you enjoyed our article and have learned something from us today!