Subscribing to a Takaful plan isn’t just about giving yourself financial protection during unwanted incidents. It’s also about being able to leave something behind for your loved ones in the event of unforeseen circumstances, such as your passing.
Many Takaful plans come with the option to name a wasi (executor) or beneficiary under conditional hibah, allowing you to leave your Takaful benefits to those under your financial care. PruBSN WarisanPlus in particular, was designed for this, with the added advantage of a generous high sum coverage as your legacy solution.
Wasi or beneficiary under conditional hibah – what is the difference?
Wasi and beneficiaries under conditional hibah have very different roles.
In Takaful, an executor, also known as a wasi, is nominated to manage the distribution of benefits upon the death of the certificate holder. If the certificate holder is a Muslim, this distribution must be made according to faraid (the determination of the rights and the heirs' portion of a deceased's inheritance is based on the provisions determined by Shariah) as part of your estate distribution. This does not apply if the covered person is a non-Muslim certificate holder. In this case, the executor will need to follow the Probate and Administration Act 1959 [Act 97] for the distribution of Takaful benefits.
Any individual can be nominated as a wasi not necessarily have to be a recipient of your Takaful benefits. However, they are responsible for ensuring your benefits are distributed according to the relevant guidelines. It is important to nominate a responsible wasi you can trust. Family members are typically nominated as the wasi, however, anyone close or an outside legal party can also be your wasi.
A beneficiary, on the other hand, will be the recipient of your Takaful benefits. This will be given to them in the form of a hibah, or gift, as stated under the Islamic Financial Services Act 2013. Anyone and any number of people can be nominated as your beneficiary under conditional hibah. When you name a beneficiary, your benefits will automatically be excluded from the estate distribution so you can ensure your nominated loved ones will receive the benefits of your Takaful certificate without needing to go through lengthy inheritance procedures. Your benefits can be used by your beneficiary to settle your outstanding debts, support their immediate financial needs while they get back on their feet, go towards your children’s education, or for any reason they deem fit.
You can nominate either a wasi or a beneficiary under conditional hibah for your Takaful certificate. However, do let your wasi or beneficiary know if you are nominating them so they are not taken by surprise when they are contacted.
What will happen to my benefits if I don’t name a wasi or a beneficiary under conditional hibah?
If you fail to nominate an executor or a beneficiary, your loved ones will need to obtain a Grant of Probate, Letter of Administration or Distribution Order before your Takaful Operator can release your benefits to them. These Orders and Letters must be issued by the Courts and this process may take several years. Your Takaful Operator is under no obligation to release these funds to them otherwise. This is a significant contrast to the 14 (fourteen) working days it typically takes if a nominee was named as an executor or beneficiary.
If you have outstanding debt, your debtors can also submit their claims towards your Takaful benefits, meaning, if you fail to nominate a loved one as a beneficiary under conditional hibah, they may not end up receiving any of your benefits at the end of the day, especially if your debts outweigh your available benefits.
So, with your family’s wellbeing in mind, be sure to nominate someone responsible today.
How do I nominate someone as a wasi or beneficiary under conditional hibah?
Nominating a wasi or beneficiary under conditional hibah can be done at any time, including when you first register for your Takaful certificate. Nominations can be made for all relevant Takaful certificates except for juvenile plans, where the covered person is below 18 years old.
Anyone can be nominated as your beneficiary. However, if your beneficiary is under 18 years old and/or not of sound mind – a child who is 15-years-old or a mentally disabled person of any age, for example – your Takaful Operator must follow a set of conditions when paying out the conditional hibah:
The Takaful benefits will first be paid to a parent of the nominee.
If the nominee has no surviving parents and the benefits do not exceed RM50,000, the Takaful Operator may pay the benefits to a proper claimant (e.g. caretaker, sibling, step-parent or grandparent) who is able to satisfy the Operator’s requirements that the benefits will only be used for the maintenance and benefit of the beneficiary.
If the hibah exceeds RM50,000, the Takaful benefits will be paid to a Public Trustee or trust company nominated by the certificate holder.
Organisations, companies or non-individuals cannot be nominated as beneficiaries. Additionally, nominated executors must be at least 18 years old with the ability to carry out the distribution of your Takaful benefits.
Nominations can be changed at any time, and new nominations will automatically supersede all previous nominations. If you would like to re-nominate someone, you must submit a new application to name them. All nominations must be signed by a witness aged 18 years and above who is not named as your wasi or beneficiary under conditional hibah.
If you are a PruBSN WarisanPlus certificate holder and have yet to nominate someone as a wasi or beneficiary under conditional hibah, contact your PruBSN Takaful representative and complete the nomination process today. And if you would like to leave your loved ones with some financial assistance in the event of unforeseen circumstances, subscribe to PruBSN WarisanPlus today. With a minimum contribution of only RM100 per month, you can leave your loved ones with a minimum sum covered hibah of RM250,000 if something should ever happen to you.
Let’s start protecting yourself and taking care of your loved ones today.
Khairul Anwar
0192717006
Source : Prudential BSN Takaful
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