All About Choosing a Life Insurance Beneficiary & Nominee

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Kotak e-Term Plan

Choosing a Life Insurance Beneficiary

A life insurance beneficiary is provided with financial support in the case of policyholder's untimely demise. The designated heir is known as a life insurance nominee or beneficiary. Click here to know more.

  • Nov 19, 2019

A life insurance policy provides financial aid to the heirs of a policyholder in case of his or her untimely demise. However, the heirs have to be assigned by the policyholder so that there is no confusion. The designated heir is known as a life policy beneficiary or nominee. The beneficiary can be any person whom the policyholder trusts. As a policyholder, you have the option to change the nominated person at any point if required. However, if your beneficiary is a minor, you need to assign a custodian. The minor can receive the benefits after turning 18 years old. Make sure to provide your beneficiary with copies of the life policy so he or she can claim the death benefit when required.

Choosing the beneficiary

There are no rules regarding whom you can choose as your beneficiary. It can be any person from your family, friends, or someone you know from work. However, the insurance companies prefer that your beneficiary is from the immediate family. Otherwise, a legal dispute can take place between the policyholder’s family and the nominee. However, there is a legal way to avoid such a possibility. If you decide to make a friend or anyone who is not your family member as a beneficiary, you can simply make that individual an heir in your will.

The concept of a beneficial nominee was introduced by the Government of India in 2015 to make sure that the legal successors of a policyholder cannot claim the death benefit unless they are assigned as the beneficiaries in the life insurance policy.

What happens when the policy does not have a beneficiary?

If you do not assign a life insurance beneficiary or if the beneficiary passes away during the policy term, and the policy is not updated accordingly, the insurer follows certain mandates as per the situation.

If you have not made a will that assigns someone as your beneficiary, the death benefit is given to your immediate heirs. Only your spouse, children, and parents are considered in such a scenario.

If you do have a will, the Indian Succession Act, 1925 is followed by the insurers. The sum assured is distributed according to the will. However, the court needs to issue a succession certificate. Also, the beneficiaries will need to provide an indemnity or waiver of legal proof to the insurer.

How to assign a life insurance beneficiary

To assign an insurance beneficiary, you need to provide their details when applying for a life policy. Once your application is accepted, the nominee will be considered as the legal beneficiary. You can also add or update the beneficiary later. To do so, you can collect the appropriate form from the insurer’s office or website. You need to sign a policy bond to complete the process when a witness is present.

You can change the beneficiary numerous times as per your requirements. However, you need to make sure that the previous and new beneficiaries are aware of the nomination so that there is no confusion in the future. You must make sure that the benefits of your life insurance do not fall into the wrong hands.Hence, you must think thoroughly before assigning a beneficiary.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


- A Consumer Education Initiative series by Kotak Life

Similar Articles

What Is Staggered Payment Option Under Term Insurance Policy?

5 Advantages of Life Insurance Going Digital

Nominee in insurance - A Complete Guide on nomination in insurance

A Step-by-Step Guide: How To Make An Investment Plan?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

ULIPs: Suitable for all

In India, should NRIs purchase life insurance?

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Life Insurance and Millennials

Life Insurance for Overweight Applicants

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

How to Buy a Term Life Insurance Online

Why Your Family Should Know About Your Life Insurance Policy?

Should You Buy Life Insurance After Getting Married?

What is Life Insurance?

Difference Between Money Back and Endowment Policy

Reasons Why Term Insurance Claims Get Rejected

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Why Term Insurance for Women is Important?

6 Things You May Not Know about Life Insurance

भारत में जीवन बीमा पॉलिसियों के प्रकार

A Term Insurance Guide for Disabled People

Important Features of a Term Insurance Plan

What is Group Insurance?

Is Life Insurance For Millennials Really Needed?

How to Choose Life Insurance for All Ages?

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Why is Medical Test Important While Buying a Term Insurance?

What happens to joint life insurance after divorce?

Insurance Changes You Need to Make Post Marriage

Life Insurance Vs. Mutual Funds Investment

Why Do Life Insurance Agents Avoid Selling Term Plans?

How Many Insurances Should I Have?

5 Smart Steps to keep in mind while buying term policies

How to Choose a Life Insurance Policy

What is Sum Assured in Endowment Policy?

What is Human Life value and a Human Life Value Calculator?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Top 5 Common Life Insurance Myths and Facts

Sabse Pehle Life Insurance

What is an Endowment Plan?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

What Is Social Impact Investing and How Does It Benefit Society?

Biggest Life Insurance Myths

What is the Difference Between Insurance and Reinsurance?

What is Underinsurance & The Dangers of Being Underinsured

Is It Advisable To Have Multiple Life Insurance Policies?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

How to Buy a Life Insurance Plan?

Choosing Between Short-Term & Long-Term Insurance Plans

What Is Financial Planning?

“Life” Insurance or “Death” Insurance?

Life Insurance Plans for Women

जीवन बीमा क्या है?

6 Different Types of Insurance Policies

How to Customize Your Life Insurance Policy with Riders

How Does Life Insurance Work?

What Is a Whole Life Insurance Plan?

How To Choose The Right Life Insurance

5 Things to Keep in Mind While Buying Life Insurance Policy

Loan Against Life Insurance Policy

Life Insurance vs Mutual Funds

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Life Insurance Policy Closure

What Is Insurance Rider and It’s Benefits?

How to Choose the Right Life Insurance Policy for Your Age?

Important Life Insurance Terms You Must Know

5 Common Life Insurance FAQs and Answers

Details Required To Be Filled In A Life Insurance Form

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Why Life Insurance Is Always a Smart Decision

Role of IRDAI in the Insurance Sector

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Customer Awareness on Information Security

What Happens If I Stop Paying My Life Insurance Premium?

Guide for Buying Online Term Insurance Plans for Senior Citizens

Process of Filing A Claim For Life Insurance

What Is Investment Insurance?

Kotak Life Claim Settlement Ratio

Do Your Financial Planning with Life Insurance!

FAQs on Life Insurance

Role of Life Insurance in Your Financial Portfolio

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

What is a Single Premium Term Plan and its Tax Benefit?

What are the Benefits of Endowment Policy?

Different Types of Insurance Policies in India

What is the Current Trend in Term Insurance?

Difference Between ULIP and Endowment Plan?

Can a Term Plan be the Substitute for a Retirement Plan?

Why do most Indians choose the wrong way to buy life insurance?

What is Minimum Life Insurance Policy?

Staying Insured While Investing

Types of Life Insurance Policies in India

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

How to Revive the Lapsed Life Insurance Policy?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Life Insurance Beneficiary

Is It Time to Review Life Insurance Policy of Yours?

What is Insurance Coverage? Overview, Types, and Examples

5 Ways to ensure faster settlement of claims

Can NRI Buy Life Insurance in India?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

How Much Life Insurance Do You Need?

How do life insurance payouts work?

NRI Premium Payment Options

Does Life Insurance Pay for Suicidal Death?

Do Life Insurance Premiums Increase Every Year?

Term Insurance Claim Process

Beware of Phishing & Fraud Insurance Calls

Who Is A Nominee In A Life Insurance Plan?

5 Reasons Why a Women Should Buy a Life Insurance

Think About Life Insurance Sooner than Later

Can You Transfer Life Insurance Policies to Another Company in India?

Life Insurance and Retirement Planning

Compare Different Life Insurance Products Offered By Kotak Life

Various Term Insurance Premium Payment Options Available in India

How Do Term Insurance Plans Differ for Smokers?

Types of Life Insurance Or One Investment, Many Options

First Job? Here’s Some Tips on How to Manage Finances

5 Things to Consider Before You Buy Life Insurance

Health Insurance VS Life Insurance

Always keep your Nominee informed

All About Life Insurance and How It Works?

How Often You Must Review Your Life Insurance Policy?

How to Make Death Claims on Life Insurance?

Terms and Conditions of Term Insurance Plans

Take 100% Responsibility of Your Family with Term Life Insurance

Term Life Insurance Vs Money Back Life Insurance

When Should You Review Term Life Insurance of Yours?

Key Things to Review in Your Life Insurance Policy Document

Term Insurance Tips for NRIs in India

Benefits of Term Insurance with Critical Illness Rider

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

How Much Life Insurance Cover Do I Need?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Choose the Nominee of a Term Life Insurance Plan Wisely

Voluntary Life Insurance Policy Vs Group Life Insurance

Why Buying a Term Insurance is Important for all Parents

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Difference Between Term Insurance and Endowment Plan

Adding A Child to Your Life Insurance Policy?

Important Terminologies of Life Insurance

Is Life Insurance an Investment?

Can An Individual Buy Multiple Term Insurance Plans?

Why One Must Buy Term Insurance before 25 Years

क्या जीवन बीमा एक निवेश है?

Does Life Insurance Cover Terminal Illness?

Guidelines for Linking Aadhar and PAN to Insurance Policies

Life Insurance for Overweight Applicants

What Is the Procedure to choose a nomination in life insurance policy?

10 Most Frequently Asked Questions - FAQs on Term Insurance

Does Life Insurance Policy Cover Covid Death?

Most Common Life Insurance Riders to Enhance Your Existing Policy

Term Insurance Vs Life insurance: Small Details, Big Differences

Digital Life Certificate for Pensioners Seeking Pension

All about Life Insurance Calculators

5 Easy Steps to Buying A Policy

7 Superficial Reasons People Avoid Buying Insurance Online

Insurance Vs Investment - A Guide to Your Financial Goals

Does Family History Affects your Term Life Insurance Rates?

जीवन बीमा पर ऋण

Types of Insurance You Must Invest in for Secure Future

Difference Between Insurance and Assurance?

All About Backdating in Life Insurance

Best Insurance Plans in India

Different Types Of Life Insurance In India

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Is it Worth Buying Disability Rider on Term Insurance?

Life Insurance for Millennials

Why You Should Never Cancel Life Insurance Policy

Everything You Must Know About ULIP Riders

Health Insurance VS Life Insurance

Term Life Insurance vs Accidental Death Insurance

What is the Difference Between Limited and Regular Pay Insurance Plan?

Why do I Need Life Insurance?

How To Use Different Types Of Life Insurance For Retirement Planning?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Why Online Term Insurance Plans Cheap?

Life Insurance with Money Back vs Without Money Back

5 Benefits of Gifting Life Insurance Cover to Your Spouse

How to Find the Best Term Insurance Plan in Seven Steps

When are Millennials required to take out a life insurance policy?

All about IRDAI

How Much Life Insurance Costs and How Much Insurance Cover You Need?

What are robo-advisors in insurance?

Term Plan with Return of Premium (TROP)

Why Renewal of Term Insurance Plan is Important

What Should One Expect During the Medical Evaluation for Life Insurance?

5 Reasons Why You Need Life Insurance in College

How to Calculate Human Life Value(HLV)?

All about Your Rights and Duties While Buying Life Insurance Policy