Who can be a nominee in life insurance?

Nominee is the person designated by the policyholder to receive the benefit of the insurance plan in case of death of the life insured. Any policyholder, who is a major and the life insured under a policy, can make a nomination. It is wise for a policyholder to choose his/her nominee at the time of buying the life insurance policy. Nominee is usually the spouse, children or parents. The policyholder can nominate more than one person as his nominee. A minor child (below 18 years of age) can also be appointed as a nominee; however, the policy holder needs to designate an adult as an appointee for the nomination. Nominee is the custodian of claim benefits paid out of the policy. The purpose of having nominees is to ensure that the insurance benefits are paid out to your loved ones who are your dependants; hence it is the utmost responsibility of the insured to choose a trustworthy person.

Related Articles:

 

comments powered by Disqus

Did you know ?

Re-Insurance

Reinsurance is an insurance that is purchased by an Insurance company from one or more other insurance companies to manage the risk. Reinsurance helps in transfer of risk from one insurance company to another. It is also called “insurance for insurers” or “stop-loss insurance”.

 Read More

View All