By Keith Tew — 13+ years insurance experience, MDRT 7× | Penang · Butterworth · Bukit Mertajam · Seberang Jaya
Minor children cannot receive insurance proceeds directly
In 13 years serving families across Penang, Butterworth, Bukit Mertajam and Seberang Jaya, I have seen too many families discover — after a death — that the insurance payout they counted on was tied up in legal proceedings for 18 months. A Hibah assignment prevents this entirely.
When a policyholder dies without a Hibah assignment, insurance proceeds go to the estate. The estate must then go through probate (non-Muslims) or Faraid proceedings (Muslims). This process:
A Hibah assignment means proceeds are paid directly to your recipient in days — not years. No probate. No legal fees. No court proceedings. For Muslims, Hibah proceeds are not subject to Faraid.
For every insurance policy you hold, set up a Hibah assignment to your spouse or primary dependent. This single action ensures your family has immediate financial access regardless of what happens during the estate process. I set this up for all my clients in Penang at no charge.
Client A — no Hibah: RM 500,000 policy goes to estate. Letters of Administration: 20 months, RM 18,000 in legal fees. Mortgage near-default. Children's education delayed.
Client B — Hibah to spouse: AIA notified. Documentation submitted. RM 500,000 released in 3 weeks. Mortgage settled. Family moves forward. Same policy. Completely different outcome.
Hibah is an irrevocable gift. On an insurance policy, a Hibah assignment means the sum assured is paid directly to your named recipient upon death — bypassing the estate entirely. No probate. No Faraid. Money reaches your family in days, not years.
No. A standard nomination means the nominee receives as trustee for the estate — subject to probate and, for Muslims, Faraid. A Hibah assignment means the recipient owns the proceeds outright. Hibah is strongly preferred, especially for Muslims.
While the policyholder is alive, the Hibah assignment can be updated — subject to insurer terms. Upon death it is irrevocable. Review your Hibah assignment after major life events: marriage, divorce, birth of children.
Setting up a Hibah assignment on an existing AIA policy is typically free. No stamp duty for standard insurance Hibah. Contact Keith Tew in Penang — he sets this up for all his clients at no charge.
Most clients name their spouse as primary and an adult child as secondary. The recipient must be 18+. For minor children, name a trustee to receive on the child's behalf. Contact Keith Tew for personalised Hibah planning in Penang.
Contact Keith Tew for a free consultation — serving Penang, Butterworth, Bukit Mertajam, Seberang Jaya and all of Malaysia.
WhatsApp Keith NowFill Enquiry FormKeith Tew Chong Wei is a Premier Presidential Life Planner with 13+ years of experience, MDRT 7×, COT 2×. He has personally facilitated over RM 4 million in insurance claims for clients across Penang, Butterworth, Bukit Mertajam and Seberang Jaya. Learn more →