Skip to main content

Nominee for your insurance policy

WHEN insurance companies hand over claim amounts, they insist on giving it to the assigned nominee. He retains the funds, until it can be handed over to the beneficiary or the legal heir. Obviously, the nominee needs to be a trusted individual. But for most customers, filling the space marked 'nominee' is a mere formality. Until the money lands in the hands of one with whom their relationship has soured.

In several instances, customers forget to review or change nominations; a divorced wife, for instance, is still named as nominee. In the man does die, she would then be entitled to receive the discharge from the insurance company, despite not being the legal heir anymore. The presence of a current wife adds to the complications. Though she is legally entitled to the proceeds from her husband's policy claim, she can only hope the ex-wife agrees to transfer the claim amount to her bank account without much fuss.

The insurance company will release the payment to the nominee, unless informed of the complexities well in advance. If there is a will, the issue can be resolved, since a will supersedes any other claim.

IF NO WILL

IT is a rare case, when an insurance company would intervene and take decisions regarding whom the claim amount should be passed on to. When matters get complicated, we usually wait for the civil courts to give their decision.

If there is no will, the claimant could move an interim order against the company, restraining it from releasing the claim amount. He or she would then have to obtain a succession certificate from the court, proving the validity of the legal heir. However, this could easily take eight to nine months before one gets the final order.

Typically, while signing insurance applications, individuals are bound to nominate the person closest to them. The policy proposer needs to take into account the nature of relationships between the nominee and the beneficiary who would be involved in the financial transaction after his death. This is especially true if the relationship in question, is that of the deceased's wife and his mother, a relationship often considered tempestuous.

In the absence of a will, subject to certain conditions, our inheritance laws consider the wife, children and parents as legal heir. Each of them can make a claim to the amount." The absence of a will or succession certificate can make the situation difficult when the nomination remains unchanged. The matter reaches the courts if there are more claimants. "But if there are no rival claimants, the insurance company will get the legal heirs to sign the discharge receipt jointly, after verifying their particulars with the company records.

In fact, the legal heirs also need to specify persons in whose name the cheques can be dispatched.

At times, a minor is named as both nominee and beneficiary. Until the minor turns 18, a guardian nominee needs to safeguard the funds. If the guardian nominee dies, a new name has to be put up to avoid delays. Some insurance companies now offer to hold on to the funds on behalf of the minor. They would offer interest similar to the current rates offered by bank fixed deposits until the child turns 18.

Typically, insurance companies explain the details of a nomination only on inquiry. If the nominee is also the beneficiary, the transfer of the claim amount ought to be hassle free.

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

SUNDARAM SELECT MIDCAP

Best SIP Funds Online   SUNDARAM SELECT MIDCAP is a mid-cap focused fund has shown remarkable consistency in outperforming both its benchmark index and the category over many years. It takes a sharper tilt towards mid-caps compared to its peers. While the fund manager used to take large positions in his conviction picks, he has moderated exposure to his top bets over the past year. He has also chosen to stay away from capital guzzling businesses instead favouring those with efficient capital allocation practices. SUNDARAM SELECT MIDCAP fund boasts of a superior risk-reward profile compared to many of its peers, and while it has underper formed slightly over the past one year, its proven track record in the hands of a capable fund manager provides comfort. It remains a worthy pick in the midcap basket. SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further inform

HDFC Prudence Fund - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   HDFC Prudence Fund Balanced funds are excellent investment options for investors with moderate risk tolerance, since they give very good risk adjusted returns. It is very surprising why balanced funds are not nearly as popular as diversified equity funds, despite being around in India for nearly two decades. Balanced funds are essentially hybrid funds with both debt and equity in its portfolio mix, to balance the portfolio risk. These portfolios typically hold up to 70% of its portfolio assets in equities and the balance in fixed income. On a risk adjusted basis, balanced funds have delivered excellent returns compared to other equity fund categories, e.g. large cap or diversified equity mutual funds. The chart below shows a comparison of category returns between large
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now