The Insurance Act allows the holder of a life insurance Policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.
A policy holder can do Nomination at the time of proposal by given the details of nominee in the proposal form. If nomination can not be done at the time of proposal, it can be done later also. If nomination is done later, it has to be effected by giving notice in a prescribed form of LIC and it has to be done on the back of the policy document. A nomination is not required to be stamped.
Remember Cancellation or Change in Nomination in insurance policies now comes at a cost as regulator IRDA has allowed life insurance company to charge upto Rs.100/- for offline issued policies and Rs.50/- Online (Electronic form) issued policies.
PROCESS OF CHANGE THE NOMINATION IN LIC POLICY :- A Policy holder can change his nomination during the policy term and it can be changed any number of times. To change the nomination in Lic Policy, the policyholder has to give a notice to LIC of India in a Form 3750 and nomination has to be endorsed. Further, the policyholder can change nominee without prior inform them. Nomination can be done or changed number of times by paying nominal fee to the insurer.
To process of change of nomination following documents require :-
- Relation Proof of Life Assured and the person being nominated
- Form No. 3750 *
- Original Policy Bond.
* If you have Joint Life Policy use Form No.3237.
* If you have Minor Nominee use Form No. 3265.
This post first appeared on Save Tax Save Money With Life Health Insurance, please read the originial post: here