The Insurance Nomination Law, which came into effect on 1 September under the Insurance Act, gives policyholders two options when nominating a beneficiary or beneficiaries under their life or, accident and health insurance policy.
Under the new law, policyholders of policies that are effected on their own lives and which pay a death benefit can choose from two options: Make a trust nomination, or a revocable nomination.
With a trust nomination, the policyholder relinquishes all rights to the policy, and can only regain it with the consent of all nominees.
With a revocable nomination, the policyholder retains the ability to unilaterally change, add or remove nominees.
But then what's the default option? I shall seek an answer to it by end of this week.
From the Life Insurance Association, Singapore website: