Question:
I recently purchased a life insurance policy, and my insurance agent told me that if I pass away, the insurance company will pay RM 1.5 million to my family. I asked the agent whether the payout could be made in monthly installments instead of a lump sum, because with so many scams nowadays, I am worried that my family might become a target if they receive a large amount of money at once. But the agent told me that the insurance company can only pay in a lump sum. Do you have a better suggestion?
Answer:
If you are concerned that a lump-sum life insurance payout may be misused, or that your family may become targets of scams, you can choose a safer and more controlled way to manage and distribute the funds to ensure long-term protection for your loved ones. Although insurance companies usually only provide lump-sum payments, you can gain control over how the money is released by setting up a Life Insurance Trust (Life Policy Trust), such as the insurance trust services offered by Rockwills.
A life insurance trust allows you to appoint a trustee to manage and distribute the insurance payout according to your wishes. Instead of a lump-sum payment of RM 1.5 million, you can instruct the trustee to make monthly payments or distribute the funds based on a specific schedule. This ensures that your family continues to receive financial support while effectively preventing misuse of the funds or falling victim to scams.
One of the greatest advantages of a life insurance trust is its high level of flexibility, allowing you to plan precisely how the funds should be used. For example, you can specify that part of the payout be used for your children’s education expenses, part for the medical care of elderly parents, or part for your family’s daily living needs. This personalised financial arrangement ensures that the insurance payout is used exactly according to your true intentions, providing your family with long-term and stable financial security.
Choosing the right trustee is crucial, as they will be responsible for managing and distributing the insurance payout according to your instructions. You may appoint Rockwills as your trustee. As a professional trust company, Rockwills has extensive experience in estate administration and insurance payout management. They can execute the trust arrangement fairly and efficiently, ensuring that the funds are properly managed. This gives you peace of mind, knowing that your family’s financial future will be safeguarded by a trustworthy and professional team.
In addition, by setting up a life insurance trust with Rockwills, you can ensure that your family’s long-term financial needs are met. With Rockwills’ steady and professional management, the trust can continue to operate smoothly even when family relationships or needs change. This means that no matter how your family situation evolves in the future, your loved ones will continue to receive financial support, while the insurance payout is protected from scams or financial disputes. This provides your family with a more comprehensive level of security.
In conclusion, by setting up a life insurance trust with Rockwills, you can provide your family with long-term and stable financial support while ensuring that the distribution of funds remains both safe and flexible. With Rockwills’ professional expertise in asset management and estate planning, your wishes will be properly carried out, and the insurance payout will receive maximum protection. This allows your family to enjoy a secure financial future without any worries.
(All information and data are provided by Rockwills Group)
About Rockwills International Group
Rockwills International Group, now in its 30th year, pioneered professional will-writing in 1995 and has since grown into the nation’s leading asset planning specialist. Today, it is the largest provider of solutions and support services in the areas of trusts, inheritance, administration, and wealth distribution. The Group has prepared more than 320,000 wills and has over 200,000 executor and trustee appointments, managing more than RM 25 billion in trust assets.