change nominee in lic policy: How to change nominee in LIC policy? – The Economic Times

Clipped from: https://economictimes.indiatimes.com/wealth/insure/life-insurance/how-to-change-nominee-in-lic-policy/articleshow/88429685.cmsSynopsis

Life Insurance Corporation (LIC) is one of the most preferred destinations for insurance among Indians. Policyholders and new customers can use the LIC website portal to obtain a variety of services. However, to change a nominee in a LIC policy one has to follow an offline process as online facility is not available yet.

Remember, only buying an insurance policy won’t serve the purpose unless you nominate your family members/related person to receive policy proceeds/sum insured in case of your demise.

Who is a nominee?
When purchasing a life insurance policy, the insured person selects or nominates his or her nominee. The policy holder’s spouse, children, or parents are usually the nominees. The insured person has the option of naming one or more nominees.
In the event that something unfortunate occurs (with respect to the insured) within the scope of the policy conditions, the nominee is the person to whom the insurance claim amounts would be payable. Nomination can be single, multiple, or alternate/successive.
If a nomination is not included in your policy, make sure to inform the department immediately along with required documents and policy details.
Only a joint nomination is permitted under a Joint Life Policy. There can’t be a nomination in favor of a stranger since there’s no insurable interest and there’s a risk of moral hazard, according to LIC website.

Can minor be a nominee?
Yes. Minors, such as your children, can be nominated; however, an appointee must be named to receive the funds if the insured dies while the nominee is still a minor. The appointee should be a major person. The appointee need not necessarily be a guardian of the minor nominee, as per LIC.

How to change nominee in LIC policy?
One can change LIC policy nominee multiple times before the policy matures. According to LIC nomination form, “A life Assured can, at any time before his Policy matures for payment, change a previous Nomination by an endorsement on the back of the Policy or by a Will.”
Please keep in mind that changing your nomination must be done at the branch that services your insurance policy.
To change the nominee in your policy, you must submit an application in the prescribed format to your servicing branch.
When the policy is issued, the nomination will be included. If there is no nominee mentioned in the policy or the nominee needs to be changed, the assured person can normally alter the nomination by getting the policy endorsed accordingly. LIC must be notified, and a nomination made/changed in this manner must be recorded in its records. However, a nomination is not required to be stamped.

Also, keep in mind that you will be charged an alteration fee as well as Goods and Services Tax (GST) before the new nomination becomes effective.
Download and fill the change of nomination form. Keep your policy bond ready for endorsement and a proof of the relationship between the policyholder and the person nominated if required.

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