Here’s How To Change Nominee Details In Term Insurance Plans

Buying a term insurance policy is one of the most effective ways to secure your dependents. But buying the policy is only half the job done. The more important thing is to ensure that the nomination details are right. This will ensure that in the event of death of the insured, the nominee will get the benefit as covered by the insurance policy.

Why Are Nominees Important?

Choosing a nominee is essential when you plan to secure your life with a term insurance policy or any life policy for that matter. Policyholders are expected to choose the nominee according to their preference at the time of purchasing the plan. In the event of a claim, the insurer is required to provide the benefits to the specified nominee.

Typically, people choose their closest family members or kin as nominee in their insurance policies. However, it is important to note that policyholders can also change the nominee throughout their policy tenure.

In such cases, knowing how to change nominees in your plan beforehand is significant, so that the person whom you intend to be the beneficiary of your insurance policy actually receives them in the event of your demise.

So, here’s how to change the nominee details in your term insurance plan

How To Change Nominee In Term Plans

Here are the steps to follow to change nominee details in a term plan.

§  The policyholder has to first obtain a change of nomination form from the insurer. It is available both on the insurer’s website or can be taken from the nearest branch office of the insurer.

§  Next, the policyholder has to fill out a form with all the necessary details and submit the same with the policy documents to the insurer. (The policyholder may need to convince the insurer of the relationship between them and the new nominee).

§  After receiving the duly-filled form from the policyholders, the insurer will update the nominee details.

Importantly, the policyholder must obtain a written acknowledgment of the change from the insurer which can be used as proof to avoid any disparities at the time of the claim settlement procedures.

Do note that one can change the nominee details in one’s insurance plans any number of times or as specified by your insurance provider.

Why Should You Have A Nominee

Term insurance plans are an important tool that can provide financial assistance to your family in the event of your death or incapacitation (if the same is covered by the policy). The financial burden is most difficult to bear in the event of loss of regular income due to these circumstances.

Thus, having a nominee in your term insurance plan can simply the claim settlement process, prevent legal complications in case different family members put up individual claims, and lastly, ensure that the money is actually received by the nominee/s in their hour of need.