Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011.
The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
You may need to explain to the insurer why you want to change the nominee and also you may need to prove your insurable interest (i.e. how will the nominee be affected financially by your demise).
Typically, nominees can be:
Your blood relations
Your business partner
You can choose as your nominee any person with an insurable interest in you. This means, they will be financially impacted by your death.
Remember, you need to be able to prove their insurable interest to the insurer.
Typically, nominee(s) can be
A family member (parent/sibling/spouse and kids)
A business partner
You can change your term insurance nominee whenever you want. If your ex-wife is your term insurance nominee, you can take the below actions:
Remove your ex as the nominee on your term plan
Inform your insurer about why you want to change the nominee
Speak to a legal advisor if your policy is included in your divorce settlement to avoid future disputes
While the process is fairly simple, the problem arises when your ex is also the assignee of your policy aka she has the sole right (ownership) of the policy.
It is different from a nominee who only gets the insurance money after your death but doesn’t have the rights to the policy.
In that case, you need to get them to reassign you the policy before the divorce is finalized.
Lastly, you can add new nominees to your term plan such as:
Your new spouse
If your new nominee is a minor child, don’t forget to appoint a legal guardian (appointee) who will receive the insurance money on behalf of your child.
If you are currently unmarried but are dating someone, you may want to make your partner your nominee. Sadly, you can’t.