Nominate A Health Insurance Beneficiary: Secure Your Loved Ones

Posted on: Mar 13, 2023 | | Written by:

Nominate A Health Insurance Beneficiary: Secure Your Loved Ones

Published on March 13, 2023. EST READ TIME: 4 minutes

Health insurance is not just an essential part of financial planning but also a crucial aspect of protecting your loved ones from unexpected medical emergencies. With the rising costs of quality healthcare facilities, having a health insurance policy with a nominated person can provide financial security to your family in case of any unforeseen event. Let’s explore who can be a nominee in health insurance, how to add or change nominees, and the significance of nominees in health insurance.

What is a nominee in health insurance?

A nominee in health insurance is a person chosen by the policyholder to receive the benefits of the health insurance policy in case of the policyholder’s death. In other words, a health insurance nominee is the person who will receive the sum assured or the payout amount from the insurance company if the policyholder passes away during the policy term.

How to Add/Change Nominees in Health Insurance?

The process of adding or changing a nominee in a health insurance policy is straightforward. To add a nominee, the policyholder needs to fill in the nomination form provided by the insurance company and submit it along with the policy documents. If the nominee needs to be changed, the policyholder must fill in the nomination change form and submit it to the insurance company. It is essential to keep the details of the health insurance nominee updated with the insurance company to ensure that the nominee receives the health insurance benefits in case of an eventuality. Most insurers have user-friendly apps to make these changes.

What are all the nominee details required?

To add a nominee in a health insurance policy, the following details are required:

• Nominee’s full name

• Nominee’s relationship with the policyholder

• Nominee’s age

• Nominee’s address and contact details

Importance of nominees in health insurance

Nominees play a crucial role in health insurance policies. In case of the policyholder’s untimely demise, the health insurance nominee receives the benefits of the policy. This ensures that the policyholder’s family members do not face any financial difficulties due to the sudden loss of the breadwinner.

Benefits of nomination in health insurance

While adding a nominee in health insurance is not mandatory, it is recommended because of its following benefits:

• Nomination simplifies the claim settlement process for the nominee.

• It avoids disputes between family members over the distribution of insurance benefits.

• Nomination ensures that the nominee receives the benefits in case of the policyholder’s death.

• It provides financial protection to the policyholder’s family members in case of an unexpected event.

• Policyholders can nominate more than one person as a nominee, which ensures that the sum assured is distributed as per the policyholder’s wishes.

Single nominee versus multiple nominees

Policyholders can nominate more than one person as a nominee in a health insurance policy. In case of multiple nominees, the policyholder needs to specify the percentage of the sum assured that each nominee will receive in case of the policyholder’s death.

Who is a minor nominee?

A minor nominee in health insurance is a person who is below the age of 18 years and is nominated to receive the benefits of the health insurance policy in case of the policyholder’s death. In such cases, the policyholder needs to appoint a trustee who will receive the benefits on behalf of the minor nominee until the nominee reaches the age of 18 years.

Who should be the right nominee?

The right nominee for a health insurance policy depends on the policyholder’s personal circumstances. Generally, policyholders nominate their spouses, children, or parents as nominees. Choosing someone financially dependent on the policyholder and who can manage the payout responsibly is advisable.

Final word

Now that you know what is nominee in health insurance, make sure you have a health insurance nominee while buying health insurance plans for family, as it is crucial for your financial planning. It provides financial protection to the policyholder’s family members in case of an unfortunate event. Policyholders must keep the nominee’s details updated with the insurance company to ensure that the nominee receives the benefits promptly and hassle-free.

FAQs

1. Can a policyholder change the nominee for a health insurance policy?

Yes, a policyholder can change the nominee for a health insurance policy at any time during the policy term. The policyholder must submit a written request to the insurance company to change the nominee.

2. Who can be nominated as a nominee for a health insurance policy?

Any individual, including a family member, friend, or spouse, can be nominated as a nominee for a health insurance policy. However, the nominee should be someone who can be trusted to act in the best interest of the policyholder’s family members in case of the policyholder’s death.

3. What happens if the nominee is a minor at the time of the policyholder’s death?

If the nominee is a minor at the time of the policyholder’s death, the insurance company will not release the claim amount directly to the nominee. Instead, the insurance company will appoint a trustee to manage the funds on behalf of the minor until he or she turns 18. The policyholder can also nominate a guardian to act on behalf of the minor in case of his or her death.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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