June 21, 2024
New Delhi
Finance How to Insurance

How To Change The Nominee In LIC ?

LIC is a highly esteemed insurance provider from which you may get insurance coverage. Depending on your demands, you can buy a variety of policies. Nevertheless, you will also need to designate a beneficiary who will get the benefits in the event that you pass away after deciding to purchase an insurance policy from the insurance provider.

Read : How To Claim LIC Maturity Amount Online

Importance of Nomination

If you designate someone to receive benefits in the event that you pass away, such an individual is known as your nominee. Because they should be someone you know and trust, the nominee or beneficiary is the most significant individual. Your family should have someone you trust to manage the insurance pay-out and make sure they don’t experience any financial difficulties down the road as the nominee. Therefore, picking someone you know well or have a great deal of trust in is crucial. Always pick a relative you know will look after your loved ones as your candidate, such as your spouse, brother or sister, parent, or sibling.

During the purchase process, you are required to designate someone. When you buy insurance coverage, you are expected to designate a person. If, on the other hand, you do not designate someone at the time your insurance policy is established, you have the option to do so later. A prescribed LIC form must be used to deliver the notice, and it must be endorsed on the back of your policy document.

Reasons to change the nominee

You might need to modify the nominee on your LIC insurance for a number of reasons. Some of them are very common and are listed below:

Personal reasons:

  • Sadly, your candidate passed away.
  • Family dispute where you don’t want to be linked with the nominee since they are no longer a member of your family.
  • You thought that someone else ought to be the nominee, but you made the decision swiftly.
  • You wish to replace the previous nominee with someone unique that you have met.

Additional reasons

  • You would like to modify the nominee’s name since it is wrong.
  • You want to make the necessary corrections because it’s possible that you neglected to enter the nominee’s relationship data accurately.
  • The month, year, or date of the nominee’s birth is incorrect.

Documents required for changing the nominee

When the nomination is changed, there are some documents that you might need to present. They are as follows:

  • To be eligible for changing nominees, Form 3750 is required to be filled out.
  • A policy bond is needed.
  • The proof of the relationship between the nominee and the policyholder

Because of this, changing the candidate in a LIC policy is a fairly easy process that you can perform as often as you choose. After the required paperwork is submitted, LIC will take care of modifying the beneficiary. You are only required to provide specific documents.

How to change a nominee ?

Due to unforeseen circumstances, policyholders may be forced to choose between changing the nominee under LIC. One such circumstance is the nominee’s passing. When your LIC policy nominee passes away, it’s crucial to name a replacement nominee. If you believe the deceased nominee isn’t reliable enough to serve as your policy’s nominee, you may also need to consider changing your LIC policy nominee. It is easy and hassle-free to modify the nominee in a LIC policy.

Changes to your nominee can be made more than once in LIC. To notify the LIC (Life Insurance Corporation) of a new nominee for your insurance plan. The policyholder is required to follow the given steps:

  • First of all, inform the LIC office about your intention of changing nominee.
  • Then fill out the nomination change form, called Form No. 3750, and submit it.
  • Don’t forget to include the policy bond.
  • Also provide evidence of your relationship with the nominee and a scanned copy of the policy.

Changing a nominee in LIC does not require notifying the current nominee. It should be noted by policyholders that if the policy’s sum assured falls below INR 75,000, they will not be charged for the first nominee change in LIC, but after the second change, they will be required to pay.

Things to Keep in Mind While Going for a Change in LIC Policy

The greatest caution must be used while changing the candidate for LIC insurance. Some of the important points are there that you should remember while changing the nominee:

  • Be sure that the nominee’s complete name appears as it does on official documents, such as a passport or driver’s licence.
  • Verify the age and address are given accurately as well.
  • A precise description of the policyholder’s and nominee’s relationship must also be provided.
  • Ensure that the minor nominee has a custodian, and the details of that custodian must be supplied as well. This is due to the fact that the kid must have someone over the age of 18 to obtain the claim.
  • It is necessary to disclose the appointee’s full name, address, age, gender, and relationship to the nominee, among other facts.
  • The policyholder must receive a written acknowledgement from the insurance company following the filing of the application to modify the nomination.
  • For the minor’s nomination, you may also include consecutive or alternate nominations.

Conclusion

Your family can be protected from financial ruin in the event of the policyholder’s death by getting life insurance. Without a beneficial nominee selected while purchasing an insurance plan for yourself, the policy is worthless. Make educated judgements by thoroughly investigating and evaluating each of the various insurance policies on the market. A good option is to purchase sufficient insurance to cover your family’s expenses.

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