Now it is mandatory to enter the name of a nominee while buying life insurance. Now parents, spouse and children are being registered as beneficial nominees in the insurance. Earlier this was not the case.
Do you know that the name of the nominee is also registered in life insurance? When the insured dies, all the facilities available to him go to the nominee. However, the insurance money will be used by the nominee who is the legal heir of the insured. Apart from this, the name of the Beneficial Nominee is also registered in the insurance who can claim the money of the insured.
Whenever you take a property, investment or insurance policy etc., there is a rule to add the name of the nominee in it. With this it is decided that if the insured does not live in the world, then the nominee gets the benefits that he gets. If the nominee is a minor then the insured registers the name of a person who will be entitled to get the sum insured after his death. Generally, if the nominee is below 18 years of age, then the sum assured is not considered payable to him. Therefore, the insured enrolls the name of another person in the policy along with that minor. After the death of the insured, the insurance money is retained by the same person until the minor child becomes an adult.
what is the new rule
According to the new rules of insurance, it is now mandatory to enter the name of a nominee while buying life insurance. Now parents, spouse and children are being registered as beneficial nominees in the insurance. Earlier this was not the case. When a person gives the name of the Beneficial Nominee in the personal form while taking the insurance, then after the death of the insured, he gets the insurance money without any dispute. It is important to know here that there are two types of nominees. First, the caretaker nominee who cannot use the insurance money but will be the caretaker. Second, the money that the Beneficial Nominee will take and be able to use it. Parents, spouse and children can be given status as Beneficial Nominee.
Who will be the Beneficial Nominee
In view of this new rule, it is necessary that whenever the name of the Beneficial Nominee is registered, it has to be kept in mind that he is a relative of the family. In the event of the death of the insured, all the facilities related to the insurance will automatically be available to that beneficial nominee. That is, only the beneficial nominee will be the last entitled to the money or facilities received in the claim settlement. If the name of the parents, spouse or children is not registered as the Beneficial Nominee in the insurance paper, then they will not get the automatic benefit of the insurance money. For this, many paperwork will have to be completed. It has to be shown that the same person is the real heir of the insured.
Can change the name of the nominee
According to a report in ‘Mint’, in the new rule of insurance, now the policyholder is getting the right to name multiple nominees simultaneously. If the insured wants, he can decide in advance the shares to be received by the nominee. Earlier, it was a rule regarding the nominee in insurance that only his legal heir could get the benefit of the policyholder’s money. Now all the benefits available as a nominee will be available only to the Beneficial Nominee whose name will have to be entered while taking the insurance. During the policy period, people can change the name of the nominee many times if they want, but at the end the nominee whose name is in the paper will be considered as the beneficial nominee. Therefore, it is advised to give the name of the Beneficial Nominee after careful consideration.
