Apr 30, 2013, 09.49 AM IST
Your life insurance policy is in place, money is accumulating within the policy and you have listed your spouse or child as the nominee.
Your life insurance policy is in place, money is accumulating within the policy and you have listed your spouse or child as the nominee. You are satisfied that the money that accrues upon your death will be channelled to the right beneficiary.
It does not end there, however. Does your nominee know about this insurance plan and that he/she would be the claimant if you were to pass away? Just as important, is your nominee aware of the procedures involved in claiming the insurance money?
Who is your nominee?
Most often, the beneficiary is the spouse or child of the policyholder, but it could also be a close relative. If your nominee is below the age of 18 years, you will have to name an adult appointee who is trustworthy enough to receive the payout on behalf of the minor child and later pass on the money once the child attains majority age.
Why you must educate your nominee
What should your nominee know?
Your nominees should have access to your insurance details. A nominee will simply have to call the insurer to find out what documents are required to receive the payout. He/she will need your policy contract, a claim form and a death certificate. Additional documents may include an FIR, a physician's report or a post-mortem certificate depending on the circumstances of your death.
In case you die within the first three years of the policy, the insurer will regard it as an early death. In such a case, further documents may be required, including a medical attendant's certificate, a burial or cremation certificate, a certificate from the deceased's workplace, and a police report in case of an accidental death.
Getting the paperwork together may seem quite a task. But you can help by educating your nominee about such eventualities. If you have not done it yet, get to it right away!
The author is the CEO of MyInsuranceClub.com
More tips on Life Insurance
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.