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Dear Friends,

Many people have spent a good amount of time and money planning for the type and amount of life insurance to purchase for their families and love ones. The planning usually takes weeks before one is able to arrive at a decision, and subsequently, reviewed throughout one's lifetime as circumstances change over time.

Unfortunately, whatever the amount or type of life insurance purchased, when it is not paid to the right person will only cause more distress than relief. The distribution of the deceased's estate is usually not a simple process and any ambiguity regarding its disbursement will only create more stress and unhappiness for the family members, as often highlighted in the media. The untimely death of a breadwinner may already have taken a toll on the family, and we certainly do not want to compound this further with more unhappiness, caused by the ambiguity in distribution of the deceased's estate. While it is not too difficult to draw up a will, sometimes it may present a dilemma thinking about the various different assets to be given to our nominated beneficiaries.

With the introduction of a new framework for nomination of beneficiaries under the Insurance (Amendment) Act 2009, policyholders can now choose to do a revocable or trust (irrevocable) nomination for the purpose of disbursement of proceeds of their life insurance policies. In this newsletter, we have invited Ms Ang Kim Lan of Goodwins Law Corporation to share some important insights regarding the laws regulating this new framework. I would strongly encourage you to read this article so that you will have a better understanding of how you can capitalise on the use of such a nomination for the life insurance policies you currently own or will purchase in the future. You may also want to contact our advisers to discuss how you can arrange for the nomination to be done.

In addition, as we continue to ride the times of investment volatility, we have our quarterly Market Report by Mr. Isaac Low, Head of Investment, updating you on the investment climate we are currently facing.

As we approach the end of 2011, we certainly hope it has been a good year for all our readers and we would like to take this opportunity to wish you all the best in your endeavours.

Happy reading!

M. SALIM

CEO & Principal Partner

First Principal Financial

		Third Quarter 2011 Market Report by Isaac Low, Head, Investment Advisory/Principal Partner, First Principal Financial Volatility in the stock markets ensued with the continuing debt crises in Europe and the US. The Dow Jones was down every month in the last quarter, and saw some of the biggest declines since August 2008. However, it can also be said that huge profits are made in times of maximum pessimism. Isaac Low reports.

		New Framework for Nomination of Beneficiaries in Life Policies by Ang Kim Lan, Executive Director, Goodwins Law Corporation Many people are under the impression that, like CPF nominations, designated beneficiaries are entitled to life insurance proceeds upon the death of the life assured. Not so, until recently, when a new law was passed to remove this confusion. The new framework for revocable and irrevocable nomination of beneficiaries was passed into law on 1 September 2009. Ang Kim Lan explains.

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First Principal Financial was founded in 1997, to provide the public with independent financial advice through well trained, experienced and dedicated professionals. Our founders have been in the financial services industry since the 1980s.

As an independent financial advisory (IFA), we act in the sole interest of our clients and choice is never an issue. Our extensive network of investment groups, fund managers, life and general insurance companies, banks and private banking groups, place us in a unique position to customise and provide the most appropriate plans that serve your best interest.

We provide advice, financial products and services to individuals and businesses in the areas of investment, insurance, estate distribution, retirement, taxation, mortgage loans, business continuation, corporate pension plans, employee benefits, and general insurance brokering.

The first local IFA to venture into the regional markets, First Principal also developed the first-of-its-kind, real-time, internet database, end-to-end application, an in-house Financial Planning Application, an Investment Advisory Service (IAS) asset allocation model, and an in-house funds settlement system. Such proprietary systems allow our advisers to monitor and manage their clients’ financial accounts in a manner rarely found elsewhere.

For more information about the Company, please visit our website at www.firstprincipal.com.

At First Principal, we place great emphasis in knowing you. We work hard on nurturing lasting relationships built on trust and reliability. A deep understanding of your financial issues is of paramount importance to us.

For sound and impartial advice, talk to us. We are always on your side.

First Principal Financial Pte Ltd
Company Registration No. 199702254W
24 Raffles Place #14-02
Clifford Centre Singapore 048621
Tel: 6220 5333 Fax: 6220 5377
Email: enquiry@firstprincipal.com
www.firstprincipal.com