What is the difference between a non-binding nomination and a binding nomination?

by Securitas on September 26, 2016

“If you’re holding your insurance within your super, you’ll be asked to nominate a beneficiary – the details of the person (or people) who will receive the life insurance money if you pass away. You have the choice to make a binding or a non-binding nomination.

Binding nomination – This is a legally binding statement which the trustee will use to know who your money should go to if you pass away.

Non-binding nomination – This is not legally binding. The trustee will take your non-binding into consideration when making the life insurance payment on your behalf, in addition to other aspects of the law.”


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