Can You Change Nominees in Term Insurance?

Who is the Nominee?

Why is a Nominee Needed?

Types of Nominees in Term Insurance

How to Change a Nominee in Term Insurance?

Benefits of Changing Nominee in Term Insurance

The benefits of changing the nominee in your term plan are:

Sum Assured Goes to the Correct Nominee

Timely changing the nominee for your term plan will ensure that the correct individual receives the death benefit. Furthermore, this will make it easy for your chosen beneficiary to access the funds without getting involved in any legal hassles.

Speeds Up Claim Settlement

Changing the nominee and having the correct person’s details in your policy documents simplify and speed up the claim settlement process on the insurer’s end. This is because the insurance company knows whom to provide the sum assured and does not have to go through the official procedures to find your legal heir.

Prevents Legal Complications

Updating the nominee details also helps avoid any legal complications that may arise when multiple family members claim the sum assured.

Ensures Your Family’s Financial Security

Timely updating the nominee details ensures that your loved ones receive the sum assured, enabling them to maintain their lifestyle even in your absence.

How to Choose a Nominee for Term Insurance?

Documents Required to Change Nominees in Term Insurance

S. No Documents
1 Change in nomination form
2 Acknowledgement from the insurer
3 Any other document specified by the insurer

Mistakes to Avoid While Choosing a Nominee for Term Insurance

FAQs about Change in Nominee for Term Insurance

When can I change the nominee in my term plan?

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You can change the nominee for your term insurance plan at any time during the policy period unless the insurer imposes any specific terms and conditions.

Are there any charges for changing nominees in term insurance?

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Insurers generally enable you to change the nominee for your term plan for free or a small fee.

How many times is a policyholder allowed to switch his nominee?

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Generally, you can change the nominee for your term insurance plan as often as you want throughout the policy period. However, the maximum number of times you can do so usually differs across insurers.

Is it possible to change the nominee once the policy has matured?

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No, changing the nominee for a term plan is impossible after the policy has matured.

How many times can we change the nominee for a term plan?

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You can change the nominee for your term plan as often as you want within the policy period.

Can I change a term insurance nominee later?

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Yes, you can change the nominee for your term insurance plan during the policy tenure.

Can a brother be a nominee for term insurance?

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Yes, you can choose any individual, including your spouse, children, parents, siblings, relatives and even friends, as the nominee for your term insurance plan.

What will happen if the nominee dies before the insured individual?

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If the nominee dies before the insured individual within the policy period, the latter can appoint another nominee. Otherwise, after the policyholder's death, the sum assured will automatically go to a Class 1 legal heir, like the spouse, son, mother, or father.

Can I change the nominee when my term policy is still in force?

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Yes, you can change the nominee for your term plan at any time within the policy tenure.

Can I appoint a minor as the nominee for my term insurance policy?

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Yes, you can appoint a minor as the nominee for your term plan. However, you must also assign a guardian or custodian to make a claim on the policy and receive the sum assured on their behalf.

Can I appoint multiple nominees for my term plan?

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Yes, you can appoint multiple people as nominees for your term plan. Additionally, you can fix the percentage of the sum assured that they are liable to receive.

Can I use a term calculator to estimate premiums after adding or changing nominees?

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Yes, while nominee changes don’t affect premiums, you can use a term calculator to explore how adding riders or increasing coverage might impact your premium. This helps you assess how such changes impact your policy costs.

Can I change the nominee in a 1 crore term plan?

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Absolutely. Whether it’s a basic or a 1 crore term plan, the process to change the nominee remains the same and is usually straightforward.

Can I have different nominees for term and health insurance?

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Yes, you can have different nominees for term and health insurance. There’s no rule that says the nominee must be the same across all insurance policies. However, for better coordination during emergencies, many people prefer to keep the same nominee across both term and health insurance policies.

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