Insurance Nominee

Whom to Appoint As Your Insurance Nominee?

The surviving family member or any other close relative (in absence of any surviving family member)who receives the cover amount in case of unfortunate death of a policyholder is known as the nominee.

Description of Insurance Nominee:

As a policyholder, you need to nominate your insurance nominee at the time of buying your policy.You can appoint your spouse, parents or your children as your nominee. You also have a choice to nominate one or more person as the nominee.

Finalizing a cover amount that will be sufficient to meet your family’s financial needs is a good move. However, it’s equally important to appoint an insurance nominee for your policy. Along with that, don’t forget to disclose your policy details to your nominee, so that they are not left clueless in case something happens to you.

One of the other important reasons as to why it’s crucial to appoint a nominee in your insurance policy is to ensure that your dependents have a smooth claim settlement process, without any need to undergo legal battles.

Here’s a look into the checklist for the important aspects to know about the nomination for a life insurance policy to help your family experience a smooth and hassle-free claim process:

An Insurance Nominee is only a Receiver

A nominee can receive the cover amount from your insurance company but can’t use it unless s/he is a legal heir. They eventually have to hand over the cover amount to the legal heir/s of the policyholder.

In case of unfortunate demise of the insured during the policy tenure,the benefits from her/his policy will be payable to her/his nominee or legal heir.

The beneficial nominee is free to use the claim amount

A beneficial nominee is the end person who is entitled to use the claim amount under your insurance plan. If you have appointed a beneficial nominee, s/he will get the claim settlement money from the company.

In case you have missed appointing a beneficial nominee, your parents, spouse or children would automatically become a beneficial nominee under your policy.

A minor can be appointed as an Insurance nominee

You can also appoint a minor nominee who is below the age of 18 years. Though, your nominee will have the status of minor till s/he reaches the age of 18 years. The claim money will be given to her/him once s/he will reach the age of 18 years.

You can alter or cancel your Nominee’s name

You have the option to cancel or alter your nominee’s name at any point of time during the tenure of the policy. This option proves to be especially handy in cases like separation or divorce, wherein you will want to change the name of the nominee.

What to do in case of untimely death of the nominee of your policy?

In case of death of the nominee happens just after the life assured – but before s/he has received the claim amount-the claim amount will be paid to the legal heirs of the life assured.

In another case, where in the death of the nominee occurs before the life assured, the claim amount will be payable to the person who holds the successor certificate grated by the court or the legal heir of the life assured or the legal representatives.

What to do if there is no Insurance nominee?

In case the life assured has missed to appoint a nominee, his legal heir or legal representatives will receive the claim amount. This is one of the reasons that make it more important to appoint a nominee to avoid any legal confliction between your dependents later on.

List of Documents to be Deposited by the Insurance Policy Nominee

The following are the documents which are deposited by insurance nominee to claim the cover amount of the policy:

  • Original document of policy
  • Death certificate of the policyholder issued by the local municipal authority
  • Documents required by the insurance company for the processing of the claim
  • Cancelled cheque to process payment


All in all, it’s important that you appoint a nominee while buying a policy. Doing this will not only make it easy for your dependents to receive the claim amount later on but will also give you peace of mind that your loved ones won’t have fallen into unnecessary legal battles in case something happens to you.

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