Life insurance, as one understands, happens to be the most vital financial tool resorted to with the purpose of securing the future of one’s near and dear ones. Be it the replacement of loss arising due to one’s demise or offering a financial cushion to the family members-the need for life insurance can’t be ruled out. Life Insurance Corporation, in that regard, is one of the most significant and known providers of that very service in India. Among the key things in functioning about your LIC policy, nomination comes to the fore. A nominee means a person whom you name for receiving the benefit of your policy in case of your death.
But what if one wants to change the nominee? Life situations change, and with them changes your decision as to who shall receive the benefits of your LIC policy. It is very important to know everything about changing nominees in the LIC policy. The following post explains all there is to know when it comes to changing nominees in the LIC policy. It considers the often-asked questions such as, “Can we change nominees in term insurance?” or “How to change nomination in LIC policy online?”.
What is a Nominee in an LIC Policy?
Nominee simply refers to a person or persons whom you name to receive the policy benefit in case of your death. In fact, these are some of the important areas where any insurance cover for your life is at least related to the fact that the benefits must reach the right person once you are gone. Quite often, these may be spouses, children, or parents. You may mention one or more persons as nominees in your LIC policy.
Why update Nominee information?
Life keeps changing, marriages happen, babies are born, relationships change. It is, therefore, so vital that you update the nominee information according to your present life status. In case the nominee you selected cannot be considered correct for whatsoever reason to receive the benefits arising under your policy, it’s time you change this information as early as possible. Failure to do so might invite legal complications or, worse, disputes among family members in the future.
Can We Change the Nominee in Term Insurance?
Like any other life insurance policy, you can change the nomination in a term insurance policy. In a term insurance policy, coverage lasts for a fixed term or period, and the nominee will be the beneficiary of the death claim if the policyholder dies during this period. You can modify the nominee at any time during the policy period by following the proper procedures.
Things to Remember while Changing the Nominee in Term Insurance More Than One Nominee: A policyholder can also appoint more than one nominee under a single policy.
Change in Nominee: You can change your nominee more than once during the tenure of the policy.
Nomination Percentage: In the case of multiple nominees, you can also specify the percentage of the policy amount each nominee will receive.
How to Change Nomination of LIC Policy: Why You May Need It
You may want to make a change in the nominee of your LIC policy due to a number of reasons. Here are some of them:
Marriage: After marriage, you might want to add your spouse’s name as the nominee.
Divorce: In case of divorce one would like to delete the name of the ex-spouse as nominee.
Addition of Children: You may like to add birth of children as nominees or change the main nominee once your child is born.
In case of the death of the current nominee, a nominee will be required for your policy anew. Shifting Relationships: Your relation with people might have changed over a certain period of time, and you may want to update your nominee accordingly in the policy.
How to Change Nominee in LIC Policy: A Step-by-Step Guide
The change of nominee in your LIC policy isn’t as cumbersome as imagined; rather, it’s quite easy. Now, there are ways one can change the nominee in the LIC policies, namely offline and online methods.
1. Offline Method: Through Nominee Change Form
The conventional process for changing the nominee in an LIC policy requires you to visit the branch where you registered the policy. Follow these steps:
Step 1. Download the “LIC Nomination Change Form“, meant for the changing of nominees, also downloadable from the official website of LIC or from the nearest LIC branch office, also known as a ‘change of nominee form’, Form 3750.
Step 2: Fill it up with due attention, providing your policy number, current nominee, full details of the new nominee in respect of name, your relationship with the nominee, amongst other information.
Step 3: Duly fill the form along with an attested copy of your LIC policy document and send it to the nearest LIC office for processing. Attach identification proof, valid identification proof of yourself and the new nominee.
Step 4: On receipt of the same, LIC would change the records and send the endorsement in respect of change of nominee.
Step 5: Keep the records for future reference.
2. Changing Nominee in LIC Policy Online: How Far Convenient It Is
Encouraging digital services, LIC has now brought in an online procedure through which you can change your nominee. Here is how you may do the same:
- Step 1: The customer has to log in to the LIC e-Services portal. In case the customer does not possess an account, he/she would have to create one by logging on to the LIC e-services portal and registering their policy details.
- Step 2: Once you are log in, click on the ‘Change Nominee’ option under the policy services section.
- Step 3: Select the policy for which you need to change the nominee. Provide all details of the new nominee, such as full name, age, your relationship with the nominee, and any other required information.
- Step 4: Upload all the related documents, including your ID proof and that of your new nominee.
- Step 5: Finally, tap on the ‘Submit’ option. After verification, LIC will change the nominee details, and you will receive a confirmation via email or SMS.
Advantages of Changing Nominee Online
There are quite a few advantages of changing your nominee online:
Convenience: You can do this from the comfort of your home without needing to visit any LIC office.
Faster Process: The online process is generally faster, and you can track the progress of the application.
Transparency: The LIC account holder can view the status of the nomination change directly in their account.
Change of Nominee: Things to Remember
Though the process of changing the nominee in the LIC Policy is an easy one, here are a few things to remember:
1. More Than One Nominee: Yes, more than one nominee can be appointed under the policyholder’s choice for the case of LIC. For that, the policyholder needs to mention the percentage of policy benefit each nominee shall get to avoid disputes or confusions much later.
2. Nominee a Minor: If your nominee happens to be a minor, that is less than 18 years of age, you will have to appoint a guardian to receive the policy benefits on behalf of the minor until such time the minor attains majority.
3. Irrevocable Nominee: If the nominee is declared to be “irrevocable”, one cannot modify the nominee later except with the consent of the nominee. So, when you decide to fix somebody as an irrevocable nominee, weigh your decision carefully.
4. Nominee Information Update: It is always good to update the nominees’ information periodically, especially if the nominees have reached a very important milestone in life like marriage, birth, or divorce. This will provide added assurance that benefits from your policy go to exactly whom you want.
Frequently Asked Questions
1. Can the nominee be changed in term insurance?
The term insurance policy provides for the nominee to be changed during the tenure of the policy anytime. The process of change of nominee in the term insurance policy remains the same as any other policy of the LIC.
2. How to check who is the current nominee in my LIC policy?
You can log in to the LIC e-Services and check out the present nominee. You may contact the nearest LIC branch for it.
3. How long does LIC take to update nominee details?
After submitting the required documents, the process generally takes a few working days to update your request with the nominee details in their records.
4. Do I need to pay any charges for changing the nominee in the LIC policy?
Normally, LIC does not charge anything for the change in nominee status, but it is always good to confirm from your branch.
Conclusion
The process of changing nominee in your LIC policy is comparatively easy but an important step towards ensuring the right amount reaches the right person at the right time. Be it offline or online, LIC has made things pretty easy. One thing that is overlooked very often is that nomination details need to be updated to reflect the change in life, which leads to some disputes or legal complications at a later stage. You facilitate an easy exercise of updating the LIC policy nomination for the following steps in the guidebook.
Be it a term insurance policy or a regular LIC policy, in this fast-changing world, knowing the changing ways of nominees will make the future of your loved ones secure; update your policy today before it gets too late!