This refers to where the designated beneficiary of an "Insurance Policy" is the settlor as well as the beneficiary of the policy, and as such must separately sign an "Insurance Claims Trust Agreement" with the Bank, and must inform or indicate to the insurance company underwriting the policy that upon the occurrence of an insurable event, the insurance company must pay the Insurance Claims to a specified account under the Bank’s Insurance Claims Trust. The bank will then deal with the proceeds in the way prescribed in the Insurance Claims Trust Agreement, and pay the Trust’s compensation to the settlor (also the beneficiary) to provide for living and care expenses.

Over the past few years Taiwan has seen many natural calamities, such as the 921 earthquake, China Airlines aviation disaster, the Typhoon Toraji, and also the relatively recent outbreak of the SARS epidemic, which have all created a situation where people increasingly need insurance.

As soon as an insurable event occurs and both parents die, the offspring become the beneficiary of the insurance claims. Yet because of the often huge sums involved, some unscrupulous relatives may try and obtaining guardianship, or else because the beneficiary is advanced in years or is a minor and so unable to put to such a large insurance payout to proper use, the original good intention of the money being used to look after the family is thwarted.

At the same time as taking out insurance or before the occurrence of an insurable event, you apply to Taiwan Business Bank to establish an Insurance Claims Trust. You also inform or indicate to the insurance company providing the policy that upon the occurrence of an insurable event, the insurance claims should be paid into the “Taiwan Business Bank Insurance Claims Trust’s specified account” so that the Taiwan Business Bank can manage or otherwise deal with the insurance claims faithfully and appropriately in accordance with the stipulations of the Insurance Claims Trust contract. In so doing your insurance adds a layer of protection so that you obtain real “assurance.”

• Ensures the family’s livelihood, so that they have no concerns for later on.
• Avoids children wantonly squandering the wealth or being at the mercy of others trying to commandeer it.
• Professional investment organizations provide comprehensive planning.
• Allows for tailor-made investment goals and their realization according to client needs.
• Trust property is legally independent from the client’s estate and so safe.
• Enjoy tax-free treatment.