Worse yet, parents, siblings and others nominated as beneficiaries were not legally binding under the law. The only alternative was to draft up a will which will set you back about $300, or taking up NTUC Income policies, which use a special law that applies only to cooperatives, to circumvent this problem.

 

Under the more accommodating new law, we are now allowed to nominate beneficiaries who can be changed without having to factor in extra legal costs for a will. However, given that this law becomes important only in very specialized situations, is there really any significant benefit to the average life insurance policy holder?