What Is a Beneficiary in Life Insurance and How to Choose?

Who Is a Beneficiary in Life Insurance?

Difference Between Nominee and Beneficiary

What are the Types of Beneficiaries in Life Insurance?

Who Can Be a Beneficiary in a Life Insurance Policy?

When to Choose a Life Insurance Beneficiary?

How to Choose and Add a Life Insurance Beneficiary?

FAQs About Beneficiaries in Life Insurance

What happens to life insurance with no beneficiary?

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If no beneficiaries are mentioned in an insurance policy, the insurer will check whether policyholders have made a will of succession. If there is a will, the insurance company will give the death benefit according to that. The immediate heir, such as a spouse, parents or children, will get that assured sum.

Can I delist the names of beneficiaries?

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You can also change or delist them from your policy’s beneficiary list if required, especially if they pass away. However, it will be difficult to change an irrevocable beneficiary’s name without their consent.

What is an irrevocable beneficiary?

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An irrevocable beneficiary is a nominee whom policyholders cannot change without their consent. Furthermore, policyholders also need to notify irrevocable beneficiaries before delisting them.

When should a policyholder update their beneficiaries?

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Policyholders may need to update beneficiaries’ names after divorce or death. By changing their names, policyholders will ensure that the right person gets the sum assured.

Why should a policyholder add a secondary beneficiary?

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Individual policyholders should ideally add both types of beneficiaries to their life insurance plans. This way, they can ensure that the right person will get financial assistance on behalf of your dependent family members.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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