Legacy Planning Goes Beyond Life Insurance - Here’s Two More Aspects To Consider
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In Malaysia, it is often seen as taboo to talk about legacy planning. While death is a natural and inevitable event, many are not comfortable discussing what happens when they pass on – which leaves some consequences to the family and loved ones.

In reality, legacy planning is an important step in financial planning, as it allows your loved ones and next of kin to preserve your assets and carry out any requests you may have upon your passing. Unfortunately, most people see legacy planning as just life insurance payouts upon your death when in fact, there are two more aspects that are just as important.

In this article, we will discuss the two aspects of legacy planning that are just as important as life insurance: estate planning and pre-planning.

What Is Estate Planning?

An estate is the collective assets of an individual in all forms, such as cash, investments, properties, and so forth. Estate planning refers to an individual’s instructions for the executor regarding the deceased’s assets, which is all included in a will which is legally binding.

When a person passes away without a will, his or her assets are frozen and unfortunately it can be a messy affair for loved ones, because it is usually a long process to recover them – in many cases, it may take years and worst still, some assets remain unclaimed if the next of kin and loved ones do not know the assets are under the deceased’s name.

Therefore, it is extremely important that you have a will, especially if you are in your advanced years.  There is also a misconception that a will is permanent once you have done it – in reality, a will can be amended as many times as you wish in your lifetime, as long as it is validated in order to be legally binding.

For example, if you have grandchildren that you wish to pass some assets to, your current will can be amended to include it. Or if a beneficiary of your will passes away before you do, you can amend your will accordingly as well.

Finally, will-writing is not as costly as many assume. All law firms offer comprehensive will-writing services, but depending on the firm, prices may vary. There are other services that offer affordable will-writing too, but just be sure that they are legally binding before proceeding.

What Is Pre-Planning?

Now, this may be a term that’s not very common, but pre-planning is becoming an increasingly popular part of legacy planning. Essentially, pre-planning is the set of instructions of how you would like to be celebrated after your passing and paying for it in advance.

Interestingly, pre-planning is a concept that has been around for centuries. In Western cultures, there are instances of pre-planning as far back as the 19th century, where “Burial Clubs” operated by churches, associations, or trade unions existed to help members cover for funeral expenses.

Over time, this practice evolved to also include the individual’s requests including how they wish to be celebrated and remembered in their final send-off, and pre-paying for it in advance, relieving any financial stress in this aspect to your loved ones during the emotionally challenging period.

While pre-planning may seem morbid, it has gained popularity because of several advantages. For instance, there’s the financial aspect – these days, funeral expenses can be anywhere from a few thousand Ringgit to tens of thousands of Ringgit, which is a huge single expense at a time where your loved ones are grieving your loss. Pre-planning allows you to assume financial responsibility for this expense, and some funeral homes even offer long-term instalment packages to make it less burdensome.

Interestingly, some individuals do their pre-planning early as a hedge against inflation. While many know about the rising cost of living, the “cost of dying” also increases with every passing year. Pre-planning allows individuals to “lock” today’s prices and protect their loved ones from paying the large as-need prices when you pass on in the future.

Besides that, pre-planning is also beneficial for your family and loved ones. Some pre-planning packages include a dedicated hotline that your loved ones can contact to initiate the process. The funeral home will then take charge of all aspects, relieving this burden from your loved ones and allowing them to focus on remembering and healing.

Today, funeral homes offer various pre-planning packages to cover the needs of people from all walks of life.

Nirvana – The One-Stop Solution For Pre-Planning Needs

As the leading bereavement care provider in Malaysia, Nirvana is a household name in the industry, with a reputation for professional and outstanding service. Thanks to over three decades of service in Malaysia, Nirvana offers end-to-end arrangements that cover various price points and needs.

Meanwhile, its pre-planning packages offer comprehensive solutions and flexibility to suit your individual needs and wishes. Nirvana also provides arrangements for different religions as well as cultural considerations. As part of this, Nirvana has Malaysia’s first professional all-female services team to offer the highest possible respect and honour. For loved ones, Nirvana is one of the few integrated bereavement care providers to offer a dedicated careline that is available 24 hours a day, with service assistants and consultants ready to render assistance during stressful situations.

Finally, Nirvana provides flexible payment options for its pre-planning packages, including interest-free instalment payment plans, so you and your loved ones do not need to worry about funeral and bereavement expenses when the time comes.

*****

As mentioned earlier, legacy planning goes well beyond the life insurance payouts to your loved ones upon your passing. Estate planning ensures your loved ones may inherit your assets in the way you wish to distribute them, while pre-planning ensures you are celebrated and remembered without the financial burden of funeral and bereavement costs.

With an extensive selection of packages, pre-planning is easier than ever before. Head on to Nirvana’s website to find out more.

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