How to Change the Nominee in Term Insurance?

When we buy a term insurance policy, we do so with one key goal in mind—to protect our loved ones financially in case we’re not around. That’s where a nominee comes in.

A nominee is the person who receives the insurance benefit, and naming the right person ensures the money reaches the ones who need it the most. But what if you need to change this nominee later? Life changes, and so do our relationships. Thankfully, it is easy to update this crucial detail.

In this blog, we’ll walk you through how to change the nominee in term insurance, and why it’s such an important thing to get right.

Understanding the Role of a Nominee in Term Insurance

A nominee in term insurance is the person you choose to receive the policy payout if something happens to you.

Any member of your family can be the nominee. Yes, you can have multiple nominees in your policy and can define the percentage of the claim amount to be given to each of your nominees.

It could be your spouse, parent, child, or even a close friend. They’re the one legally entitled to claim the sum assured in your absence.

Why is this important? Because life is unpredictable. The right nominee ensures your hard-earned money goes to someone who will use it wisely and support your family. Without a nominee, your loved ones might have to go through legal processes to claim the benefit—something no grieving family should have to deal with.

Also, if you don’t assign a nominee or forget to update one, the payout might not reach the intended person. The insurance company will then distribute the money based on legal heir rules, which might not align with your wishes. So, assigning a nominee isn’t just a formality—it’s a way of taking care of your family, even when you can’t be there.

Benefits of Having a Nominee for Term Insurance

Having a nominee in place brings peace of mind—not just to you but to your family too. Let’s break down the key benefits:

Quick Claim Settlement: When a nominee is already mentioned in the policy, the insurer can process the claim faster. There's no ambiguity about who the money should go to, and that saves valuable time.

Avoids Legal Hassles: Without a nominee, your family may have to go through legal procedures to claim the amount. This could be stressful and time-consuming, especially in an emotional time.

You Stay in Control: By naming a nominee, you’re clearly stating your intent. You get to choose who you trust with your financial legacy, and that’s empowering.

Supports Financial Planning: When your nominee knows they’re responsible for a claim, they can plan ahead. It gives them clarity and helps them prepare for future financial responsibilities.

Option to Nominate Multiple People: You can also assign more than one nominee and decide how much share each person will get. This is especially helpful in joint family situations.

In short, nominating someone isn't just about ticking a box—it's about safeguarding your family’s future.

Types of Nominees in Term Insurance Policy

When choosing a nominee, there are different types you can consider:

Primary Nominee: This is the main person who will receive the claim amount.

Contingent Nominee: If the primary nominee is not alive at the time of claim, the contingent nominee becomes the beneficiary.

Multiple Nominees: You can choose more than one nominee and assign specific percentages to each. For example, 50% to your spouse and 50% to your child.

You can change the nominee anytime during the policy term. All you need to do is inform your insurer and follow a simple process—which we’ll cover in the next section.

Steps to Change the Nominee in a Term Insurance Policy

Changing the nominee in your term insurance is easier than you might think. If you are a Bandhan Life customer, you simply need to log in to iAssist, (your self-servicing portal), with your registered mobile number and OTP. Just select the policy you want to make changes to and change your nominee details.

However, here’s a step-by-step guide about the process that is generally followed by all insurers:

Step 1: Review Your Policy

Go through your policy documents to check the current nominee details.

Step 2: Fill the Nomination Change Form

Download or collect a nomination form from your insurer’s website or office.

Step 3: Attach Required Documents

You may need to submit a valid ID proof of the new nominee along with the filled form.

Step 4: Submit the Form

Send the form and documents to your insurer either online or by visiting a nearby branch.

Step 5: Confirmation from Insurer

Once processed, the insurer will send you a confirmation letter or email stating the updated nominee details.

Changing your nominee online is also possible with many insurers, making it even more convenient for today’s digital-savvy users.

Things to Consider Before Changing a Nominee

Before you make the change, keep these things in mind:

Check the Relationship: Make sure the new nominee is someone you trust to act in the best interests of your family.

Inform the Previous Nominee (If Needed): While not mandatory, it’s a good practice to inform them, especially in family matters to avoid disputes.

Documentation is Key: Ensure all details—like the nominee’s full name, age, and relationship—are accurate and match their official ID.

Know the Impact: Changing a nominee overrides any previous nomination. Make sure this is a well-thought-out decision.

Minor as Nominee: If your nominee is a minor, you’ll need to appoint an appointee (guardian) who will receive the amount on their behalf until they turn 18.

Being thoughtful and clear while changing a nominee ensures that your family benefits exactly the way you intended.

Frequently Asked Questions

1. How many times can I change my nominee?

You can change your nominee as many times as you want during the term of the policy. Every update simply needs to be communicated to your insurer.

2. What documents are required to change the nominee?

Typically, you need:

• Duly filled nomination change form
• A copy of your ID proof
• ID proof of the new nominee
• Some insurers may ask for additional documents like relationship proof.

3. What happens if my nominee passes away before me?

If the nominee dies before the policyholder and no replacement is named, the insurance payout will go to the legal heirs. This is why it’s important to keep nominee details updated.

4. Can I name a minor as my nominee?

Yes, but you’ll also need to appoint an appointee or guardian, who will receive and manage the claim amount on the minor’s behalf until they become an adult.