Change the Nominee in a LIC Policy
A nominee is a person who is entitled to the policyholder’s assured sum in the event of the policyholder’s death. The nominee can be a member of your family or a close relative in whom you have faith. After the policyholder’s death, the nominee receives the sum assured on the insurance policy and is responsible for the covered amount.
The nominee ensures that family members do not face financial hardship following the death of the policyholder. Your family members will not be eligible to receive the claim amount if you fail to add a nominee to your policy. As a result, it is critical to carefully select the nominee and ensure that the individual is well known to you.
The majority of people choose their parents, siblings, or spouse as their nominee. Choosing a nominee is important not only when purchasing insurance, but also when opening bank accounts, Demat accounts, and other investment schemes. If you did not include a nominee when purchasing an insurance policy for yourself, you can do so later.
A nominee is a person who is entitled to the claim money following the death of the policyholder.
In the event that the existing nominee dies, the policyholder is required to change the nominee in LIC.
Nominees should be added to your insurance policies, bank accounts, and other investment plans.
You can change your nominee in LIC several times. All you have to do is give the LIC (Life Insurance Corporation) a notice in form no. 3750 and make sure to provide all the details of the new nominee of your insurance plan along with the policy bond, relation proof with the nominee, and a xerox copy of the policy.
To change the nominee in LIC, you do not need to notify the current nominee. Policyholders should keep in mind that they will not have to pay any charges for the first time on the nominee change in LIC if the sum assured on the policy is less than INR 75,000, but they will have to pay charges from the second time onwards.