Home»Personal Finance» Buying Insurance? Know Why Filing Accurate Nominee Details Is A Must

Buying insurance? Here's why filing accurate nominee info is a must

  • Myinsuranceclub.com
  • Apr 13, 2013, 11:11 AM IST
Buying insurance? Here's why filing accurate nominee info is a must
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The author, Deepak Yohannan, is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal. For more articles by Yohannan, visit MyInsuranceClub.com. You may write to the author at Deepak@myinsuranceclub.com
 
Death catches even the most prepared of us off-guard. Indeed, there is no escaping the eventuality of death. Earning members of families, however, must provide for their near and dear ones in the event of their passing. And life insurance policies help you do just that. 
 
A disciplined savings regimen over several years is all it takes to ensure that your dependents do not want for money or the basic comforts once you are no more. 
 
Year after year, you pay regular insurance premiums – never a delay, never a missed payment. You keep all the papers in place, where your loved ones have easy access to them. Everything is in order, so that in the event of your passing, your family will not have to stress about receiving payment from your insurer. After all, they should not have to run around doing paperwork while they grieve for you.
 
That is why it is so important to file nominee details accurately. This helps ensure that your family members receive the insurance payout in a timely and hassle-free manner. A single error could lead to payment delays and mental stress regarding the insurance amount. This is more prevalent in cases of NRIs and HNIs, because most nominees are not even aware of the assets in their names. In such cases it is even more important to file correct details.

 

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    Buying insurance? Here's why filing accurate nominee info is a must
Who Is a Nominee?

When buying insurance, the policyholder is required to designate someone to receive the proceeds when the insurance policy pays out following the former's death. The person who receives the payout is called the nominee.

Most policyholders appoint their legal heirs as their insurance nominees. However, this need not always be the case. The nominee need not be related to the policyholder.

However, in such a case, the policyholder may be required to prove that the nominee will be financially affected by his/her death.

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