Setting up a TRUST

As parents, you would protect your children. For example, you may purchase insurance so that in case something happens to you while they are young, there will at least be cash to provide for their needs. If you have taken insurance, chances are, you may think that you have done enough in providing security to your loved ones by nominating them as your beneficiaries in your insurance policies. Think again...

Are your loved ones completely protected when you nominate them as beneficiaries in your insurance policies? Is that actually enough?

You may want to consider:

• If your spouse is the sole beneficiary to your insurance policy, what happens to the insurance proceeds upon your spouse’s passing? Or,
• If your young children are the beneficiaries, who should claim the insurance proceeds for them in the event both you and your spouse are unable to?
• Are your beneficiaries mature enough to handle large sums of money?
• Is there someone competent enough to assist the beneficiaries?