Touch wood but if something happens to you today, do you know where would your EPF money be going to? Your parents? Your current wife? Ex wife? Children? Who? According to Deputy Finance Minister Datuk Ahmad Maslan, 9.75 million out of 13 million EPF contributors have yet to name their nominees for their savings in case of death. Statistically, that’s 7.5 persons out of every 10. Come on, hands up, who has yet to fill in and sign?
Ok, I am not just talking about those who have not filled up. I am also talking about those who may have filled the name of someone whom they may want to change today. Or those who has forgotten totally who they filled in previously. No worries, your latest nomination would overwrite your previous one automatically. Of course, most of the time, nothing would happen to us.
Can you nominate your children? Yes, but according to information from EPF website:
“If the nominee is under the age of 18 years old, the EPF will not make any payment to the nominee until the person reaches the age of 18.
Nevertheless, the guardians of the nominee may apply to make a withdrawal on behalf of the nominee for the purpose of supporting the nominee. Approval will be at the discretion of the EPF. “
The problem with this is that everything is so unclear. Who have you appointed as Guardian? How much is enough for the Guardian to support your children on a monthly basis? Last but not least, when your children reaches 18 and EPF gives the lump sum of money to your children, how would he be able to handle such a large sum of money?
Be reminded, without a nomination, it may take a while for your loved ones to claim the money. Their suffering is thus not confined to just losing you but also the inability to support themselves financially. There are plenty of EPF offices all around you. Click here to see where the EPF offices are. One lunch time is more than enough. Just fill up and sign. Be responsible!
written on 21 March 2014
Next suggested article: Before you start your investment, FD first!
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