In a term insurance policy, a nominee is the individual you choose to get the death benefits in case of your untimely demise. Choosing a nominee is important because it can create major chaos if the policyholder passes away without mentioning anyone as a beneficiary. The family members might still get the benefits but they will have to face a lot of hassle for that. As such, a term policy not only lets you add one or more nominees but you are also allowed to change nominees in the middle of the tenure.
Are you allowed to change your nominee in a term insurance policy?
When you calculate term insurance premium and invest in the plan, you are in it for the long haul. Anything can happen during such a long duration of time. Maybe your relationship with the nominee changed, and you can no longer rely on the person. In an unfortunate turn of events, maybe the nominee had an unexpected demise before the policyholder.
Regardless of the reason, keep in mind that you are allowed to change your nominee in a term insurance policy. All you need to know are the right steps to make this change successfully.
Four steps to change your nominee in a term insurance policy
If you want to change your nominee in a term insurance policy for any reason, then you need to approach your insurance company and ask them about the process. With that being said, here is a general guideline on how the process actually works:
Step 1: Get the application form
Your first job is to get the change of nomination form. You can get this form online. You can also physically visit the insurer’s branch office to get the application form.
Step 2: Fill in the application form
Now, fill in that form accurately before submitting it to the insurance company. Apart from the basic details about the new nominee, you will also have to specify the details of your relationship with the nominee. You can have multiple nominees for a term policy as well. You will have to mention the details of your relationship with each nominee in that case.
Step 3: Provide proof of your relationship
It is your responsibility to convince your insurance company about the relationship you have with this new nominee. You might need to offer some proof of the relationship. Typically, people choose their close family members as nominees. So, offering proof should not be too difficult.
Step 4: Updating new details and get notified
The insurance company will go over the application form you have submitted, along with any documents that you have provided. If there are no mistakes or discrepancies, then you are allowed to change the nominee. After the process is complete, the insurance company will make sure to notify you to that effect.
Hopefully, you have a clear idea about how to change your nominee. So, you can start the necessary proceedings now.
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