How To Change Nominee In Life insurance?

The nominee can be one or more to avoid confusion among legal heirs. The death benefit cannot be received by a minor nominee, the nominee should have attained 18 years of age. The details of the nominee should be exact, and reliable and should be updated periodically with the insurance company. The nominee should be a well-trusted person who does not need any replacements but if you still want to change the nominee for whatsoever reason, follow the steps mentioned in the article.

What Is Nominee in Insurance?

A nominee is known as the individual chosen by the life assured to claim the death benefit of a term life insurance policy.

• The selection of the nominee is done by the policyholder at the commencement of the policy. The nominee is usually a trusted person who can look after the funds and utilize the death benefit wisely.
• An individual usually chooses immediate family members like children, spouses, parents, or any other reliable relative.

Choosing a nominee is a considerate decision as the whole fund management has to be done by the nominee. 

How To Change A Nominee In A Life Insurance Policy?

You can follow the below-mentioned steps to change the nominee in your life insurance plan - 

1. The policyholder has to fill out the change of nomination form given by the life insurance company whether online or offline. 

2. The nomination form along with a copy of the policy document has to be handed over to the insurance company for further updating the nominee details. The policyholder has to acknowledge the insurer about the relationship between him and the new nominee selected. 

3. The policyholder then receives an acknowledgement from the insurance company for the change of nominee name to avoid any confusion during the life insurance claim settlement process.

You may also like to read:- Life Insurance Mistakes Which Can Be Easily Avoided 

What is the Cost of Changing A Nominee In Life Insurance Policies?

The cost of cancelling or changing the nominee details in insurance policies now costs up to INR 100 as per IRDA guidelines.

The charges depend on whether the policy is obtained online or offline, for online policies these charges are INR 50 and INR 100 for offline policies.

IRDA guidelines further stated ‘No fee other than what has been prescribed shall be collected for registering a nomination either at the time of effecting a policy of life insurance or at any time thereafter or towards any other services relating to nomination’. 

Also Read: How Do I File a Life Insurance Claim?

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.