Life Insurance Trust Easy

LITe is a trust arrangement/ agreement that involves three parties: the TRUSTOR or the life insurance policy holder, the TRUSTEE, which has the duty to hold and safekeep the life insurance policy and manage the proceeds thereof upon payout, in trust for a third party, who is designated as the trust’s BENEFICIARY. 

LITe is generally for: a) safekeeping of the insurance policy, b) management of the insurance proceeds upon payout to the TRUSTEE and c) designing and defining the terms and conditions on the release and distribution of the insurance proceeds to the BENEFICIARY. 

• LITe allows the TRUSTOR to set conditions and schedules on the release of the insurance proceeds to the Beneficiary. 

• The insurance proceeds in trust shall not form part of the estate of the trustor and shall not be included in the computation of estate taxes. 

• LITe’s validity does not depend on court probate proceedings. 

• While in trust, the insurance proceeds shall be managed, preserved and handled for the future use of the BENEFICIARY. 

• Allows continuity of management of the insurance proceeds even after payout.

• Protects the insurance proceeds against mismanagement and diminution after payout. 

• Maximizes the investment potential of the insurance proceeds prior to distribution. 

• SBC TAMG is part of Security Bank Corporation, a financial institution regulated by BSP.  

• SBC TAMG adheres to the bank secrecy law, data privacy act and the confidentiality policies of Security Bank Corporation.  

• Well-equipped to manage funds and securities (access / exposure to all types of investment outlets, with branches nationwide, seasoned fund managers and dedicated Account Officers).  

• Management of the insurance proceeds and LITe account is based on BSP guidelines and Trust Officers Association of the Philippines Code of Ethics. 

• Smooth, confidential and successful transfer of insurance proceeds to the BENEFICIARY, taking into consideration the TRUSTOR’s requirements and objectives. 

• Quarterly reports on the performance of the insurance proceeds are issued and books of accounts are kept in accordance with relevant laws.   

• Account opening and maintenance handled by industry professionals. 

• Yes, the beneficiary’s consent to the LITe agreement is required upon release of the insurance proceeds to the TRUSTEE. 

• There are terms and conditions in the LITe agreement that requires the sign off of the BENEFICIARY. 

The BENEFICIARY shall be represented by its legal or court-appointed guardian. 

The entire insurance proceeds shall revert back to the TRUSTOR’s estate and shall form part thereof. 

Yes, a minimum sum assured of PHP10,000,000.00 is required to open a LITe with a directional fund management mandate, while a minimum insurance coverage of PHP50,000,000,00 is required to open a LITe with a discretionary fund management mandate. 

You may contact your SBC Branch of Account or Wealth Manager or email [email protected]