Insurance

Who can be a nominee in a life insurance policy and nomination procedure

A nominee is the person who receives the proceeds of a life insurance plan in case of death of the policy holder during the policy term.

Buying a life insurance policy is one of the best ways to protect the future of your dependents. However, to ensure that the proceeds of your policy reach your loved ones in case of your death, you need to assign a trustworthy person as your nominee while signing up for your insurance plan. This nominee is entitled to claim and receive the policy amount in the unfortunate event of your death during the policy tenure.

A nominee is the person who receives the proceeds of a life insurance plan in case of death of the policy holder during the policy term.

In case your nominee is not your legal heir, mention in your will that the proceeds of your life insurance plan will be received by the nominee. This will prevent any disputes during the time of settlement of the claim.

Nomination procedure

You can appoint the nominee for your life insurance policy while filling out the plan's application form. You will need to furnish additional details, such as the nominee's full name, address, age, relation with you, etc. in the nomination form.

If you wish, you can also appoint more than one person as nominee for your life insurance plan. If the nominees are your legal heirs, you can specify the percentage of the sum assured you want each to receive in case of your death. As a policy holder,you have the right to cancel or change the nomination any time before the policy matures.

You can also appoint a minor child (below 18 years of age) as your nominee. However,you need to designate an adult as an appointee for the nomination.

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