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Can the beneficiaries claim the money if the policy holder is a bankrupt?

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asked on Jul 25, 2017 at 22:47
by   jyang
edited on Aug 1, 2017 at 10:11
 
I am an undischarged bankrupt. I have a Life Insurance policy and the beneficiaries are my children. Upon my death can the beneficiaries claim the money without it going to Jabatan Insolvensi Malaysia (JIM). As my debt is more than my insured value. I was told that the insurance companies will check if the deceased has any debts before releasing the money to the beneficiaries. 
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9 Answers

answered on Jul 25, 2017 at 23:09
by   jeff005
edited Aug 1, 2017 at 10:13
 
Whole life insurance is creditors proof by law. It has no cash or surrender value. It goes direct to nominees without hindrance.

Who told you? The insurance company or agents or 'kedai mamak teh tarik' so called legal wise friends?
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answered on Jul 26, 2017 at 01:41
by   jyang
Thanks  jeff005. My policy has a surrender value . As I have no bank account I can't surrender so I am leaving it to my beneficiaries. The insurance agent told me that the insurance company will check with JIM and will not release the money to the beneficiaries.
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answered on Jul 26, 2017 at 01:51
by   jeff005
What the agent told you is correct.
The best way out is to be discharged.
How old are you?
How long you have been made a bankrupt?
By whom you were made bankrupted?
Did you ever report in to JIM?
Do you want to be discharged?
Any EPF savings?
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answered on Jul 26, 2017 at 01:57
by   jyang
edited Aug 1, 2017 at 10:15
 
Thanks jeff005

How old are you?
61

How long you have been made a bankrupt?
More than 10 years but only found out recently.

By whom you were made bankrupted?
Banks. I was a guarantor for my company business loans.

Did you ever report in to JIM?
I went to Jabatan Insolvensi Malaysia (JIM) last month they gave me an appointment with the Official Assignee in August 2017.

Do you want to be discharged?
Was told after 5 years if I make payment regularly.

Any EPF savings?
No
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answered on Jul 26, 2017 at 02:03
by   jeff005
edited Aug 1, 2017 at 10:17
 
How much is the surrender value?
Do you intend to report in?
Are you still working?
Do you have any critical illness?
Do you have any assets.. house, car?
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answered on Jul 26, 2017 at 02:17
by   jyang
edited Aug 1, 2017 at 10:19
 
How much is the surrender value?
I bought a policy for RM100k about 8 years ago so surrender value is not much. My children now paying the premiums.

Do you intend to report in?
I am not sure if I should.

Are you still working?
No

Do you have any critical illness?
No

Do you have any assets?
No
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answered on Jul 26, 2017 at 02:29
by   jeff005
edited Aug 1, 2017 at 10:22
 
Does your this policy comes with hospitalisation? And other medical benefits?

Fellow trees swinger, read thru the past one year under this bankruptcy section regarding bankruptcy. How to apply for discharge of bankruptcy, then you decide whether to report in to JIM or not. There are both pros and cons subject to your lifestyle and circumstances.

Tomorrow go to BSN and try to open a joint savings account with one of your children. They must be first name and you, as second name. 
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answered on Jul 26, 2017 at 02:38
by   jyang
edited Aug 1, 2017 at 10:23
 
Thanks jeff005.

I have another medical policy for RM100k the agent said that will not be affected as it is only to pay for hospitalization.

BSN won"t run a check? I tried opening a savings account at the bank. They were so nice before they run the check after that I got the "one kind look".
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answered on Jul 26, 2017 at 02:49
by   jeff005
edited Aug 1, 2017 at 10:24
 
Go try that bank, then we discuss further. No try means cannot. Just try okay? Trust me..

Careful of the medical policy. Make sure if anything happens, you would be admitted to their panel of approved hospitals. Otherwise you may have to pay first and then claim. They will give you a cheque. Then back to square one without bank account.

Wow.. 100k, you were a high swinger before? The premiums should be sky high for the age.

Please go try open account at BSN or any new overseas bank. Bank of China, Bangkok Bank?
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