In the event that a policyholder is explicitly claimed dead, a nominee is a person or persons who have been indicated by the policyholder as being on the receiving end of the benefits offered by a Life Insurance Policy. Depending on the contract, other events, such as the policyholder suffering from a terminal disease or severe illness, may also trigger payment.

Hence, taking a responsible step and nominating someone you believe is trustworthy to claim the benefits is extremely important, as this will spare them from rushing around attempting to prove that they are entitled to it. It is clear that many individuals are making more responsible financial decisions, and the concept of having a deserving nominee is considered a crucial aspect of Life Insurance Plans in India.

Choosing a trustworthy nominee

Choosing a nominee isn’t a rigid process. In fact, nominations are modifiable, this can be done with a little paperwork or form filling. The person who would be the latest nominee is supposed to supersede any previously mentioned nominee.

Things to keep in mind while choosing a nominee-

Importance of Nominee in Life Insurance Policy
  • It is generally better to choose someone who is a close acquaintance as the nominee, instead of some unrelated entity.
  • In case, the nominee is less than 18 years, i.e., the nominee categorizes as a minor, policyholder is required to assign someone as an appointee or a guardian.
  • The policyholder also has the option to nominate multiple nominees; if this is the case, then the benefits are accordingly divided amongst these nominees. However, nominations of multiple nominees sometimes result in legal battles between them.
  • The policyholder can also have a successive nomination; if this is the case the first nominee would be approached, in failing to contact him for various reasons, the second nominee would be approached, and so on.
  • The insured person’s spouse, children, or parents can all be the beneficiary nominees. As a result, if an insured person mentions any of them as a nominee in a policy, they automatically become the beneficial owners of the benefits claimed in an Insurance Policy.

Life Insurance Plans cover a wide range of individual and group insurance needs, including protection, pension, savings and investment, health, child policies and many more.


Previously, there was concern about the true status of nominees; the rules were not clear, legal heirs apart from nominees also used to make claims regarding the benefits of the policy. A concept of Beneficial Nominee was established in the year 2015 with the help of Insurance Laws (Amendments) Act, to tackle this problem and ensure that the insurance benefits get transferred to the authentic and designated people.

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