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Feb 24, 2022
Just buying the insurance won't serve the purpose unless you nominate your family members/relatives to receive policy proceeds/sum insured in case of your demise.
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When purchasing a life insurance policy, the insured person selects or nominates his or her nominee. He/she has the option of naming one or more nominees.
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If something unfortunate occurs to the insured within the scope of policy conditions, the nominee is the person to whom insurance claim amounts are payable.
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Only joint nomination is permitted under joint policy. There can't be a nomination in favor of a stranger since there's no insurable interest and risk of moral hazard.
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The policy holder's spouse, children or parents are usually the nominees. Nomination can be single, multiple, or alternate/successive.
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However, an appointee who is a major must be named to receive the funds if the insured dies while the nominee is still a minor. This may not necessarily be the guardian.
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You must submit an application in the prescribed format to your servicing branch. The process is offline only. Nomination will be included when the policy is issued.
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LIC must be notified and a nomination made/changed in this manner must be recorded in its records. However, a nomination is not required to be stamped.
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One can change LIC policy nominee multiple times before policy matures. You will be charged an alteration fee as well as GST.
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