Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Choose the Nominee of a Term Life Insurance Plan Wisely

Choose the Nominee of a Term Life Insurance Plan Wisely
  • 10th Oct 2019 |
  • 2,150

It is important to insure yourself with a life insurance policy to keep yourself protected from the uncertainties of life. You never know what might happen to you tomorrow and it is best to have a term life insurance to ensure the financial protection and security of your loved ones. When you purchase a life insurance policy, you will be asked to add a nominee for the plan. You need to know the importance of nomination to make the right decision.

What is a ’beneficial nominee’ in a term life insurance plan?

As explained above, you need to add a nominee in your life insurance plan. The nominee will have a legal right to the sum assured received from your insurance plan if something untoward happens to you. According to the Insurance Laws (Amendment) Act, 2015, there is a concept of ‘beneficial nominee’. When you nominate your spouse, parents, or children in your insurance plan, the insurance company will pay the death benefits to the nominee who is known as a ‘beneficial nominee’. Any other heirs will not have any right to claim the insurance money. Online term insurance plans, which have a maturity after March 2015, will have to abide by these rules.

Why you need to be careful while choosing the ’beneficial nominee’

Whenever you buy a term plan, you need to be very careful about who you nominate in the policy. It is assumed that you know what you are doing when you nominate the parents,
children, or spouse as a nominee to lump sum received from your insurance policy. The nomination is as good as a will and your beneficial nominee will receive the death benefits without having to go through any legal process. It can be harmful and stressful if you are careless when choosing the nominee. If you want to ensure that the intended benefit of the policy reaches the right person, you need to nominate them as a ‘beneficial nominee’. As per old rules, a nominee could receive the death benefit only at the time of the death of the
policyholder. These rules have been amended and in case of an endowment life insurance plan, the nominee can collect the maturity benefit of the plan. If there is a scenario wherein you survive the policy term but are unable to collect your insurance plan’s maturity amount due to an unfortunate incident, the ‘beneficial nominee’ will get that sum assured.

Secure Your Loved Ones by Investing In Term Plan Now

You are well aware of the importance of a term life insurance plan but you also need to be mindful about choosing the right beneficial nominee for your plan. You can
add more than one nominee in insurance and can change the person multiple times. The recent nomination will supersede the previous ones. It is important to access the policy and the nominee at regular intervals to ensure that the purpose of investment is achieved. You do not want your savings to end up with someone who is not your preferred nominee. Hence, pay very close attention to who you choose as a nominee. You must remember that in case of an untoward incident, the death benefit will be handed over to the recent ‘beneficial nominee’ mentioned in the policy documents.

Kotak e-Term Plan

Features

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

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

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Different Types of Protection Plans

Choosing Riders for Insurance Plans

Can I Get Term Insurance on Behalf of My Spouse?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

How Much Cover Should I Take In A Term Plan?

Should You Buy a Term Plan After 40?

Advantages & Disadvantages of Term Insurance in India

How Does A Term Life Insurance Work in India?

8 Benefits of Term Insurance You Should Know

Why Should You Buy Term Insurance in 2022?

How To Calculate The Amount Of Term Life Insurance You Need?

Term Insurance With Riders In India

What is Term Insurance - A Complete Guide

How To Choose the Right Sum Assured Under a Term Plan?

Do You Need Term Insurance Cover After Retirement?

Buying A Term Insurance Plan? Take These Factors into Account

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

What Is a Renewable Term Insurance Policy?

Why Should You Add a Rider to a Term Insurance Plan?

What is a short term insurance policy?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

How Much Term Insurance Do I Need

Insuring Against Accidents with an Accidental Death Insurance Rider

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Insurance Policy for Housewife In India

How To Choose the Right Term Insurance Plan?

Why Buy Term Insurance Plan With a High Cover?

What are the Documents Required for Term Insurance Plan?

Term Life Insurance Plan for Smokers vs Non-Smokers

Term Insurance Plans and Policies for Smokers

Everything About Claim Settlement Ratio for Term Insurance

Should You Have Multiple Term Life Insurance Policies?

How Does Term Life Insurance Work? Learn the Benefits

Do Beneficiaries Pay Taxes on Term Insurance?

All About Term Insurance Inbuilt Coverage

What Is the Correct Age to Buy Term Insurance?

What is Critical Illness Policy

Insuring yourself against Ill Health with a Critical Illness Rider

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Why should single women purchase term life insurance?

How Not To Get Your Term Insurance Claim Rejected

Difference between Term Insurance and Life Insurance

Increasing Term Insurance and Riders

Term Insurance: Smokers vs Non-Smokers

Is term Insurance Needed for People With No Dependents?

Why is it important to buy term insurance plan?

Why Married People Should Buy Term Insurance Under MWP Act?

6 Types of Death not covered in Term Insurance Plan

Can I Buy Term Insurance for a COVID-19 Patient?

Top 3 Reasons Why You Should Buy A Term Plan Now

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Term Insurance Age Limit – Term Plan for All Age Groups

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Reasons You Need Term Insurance Plan as a Self-Employed Person

4 Methods to Calculate How Much Term Insurance You Need

How to Surrender Term Life Insurance When you have No Liabilities

How to Compare Term Insurance Online

4 Reasons Why You Need Critical Illness Cover

Do I Need to Give a Medical Test for Term Insurance in India?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Should Youngsters, Working Couples Buy Term Insurance Plans?

Can I Make Changes to My Term Insurance Policy Post Purchase?

Why does every working woman need life insurance?

All you need to Know about Term Insurance Plans for Housewives

5 Reasons to Buy Term Insurance When You are in Your 30s

Comparing Term Plans – What Should You Look Out For

Understanding Term Insurance Riders

Tips to Choose the Right Term Period for Term Insurance Plan

Does Term Insurance Cover Accidental Death?

Advantages of Buying Term Insurance in Your 50s

Protection for your family

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Why 1 Cr Term Plan Is Necessary For Family?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Is ₹1 Crore Term Insurance Good Enough Cover?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Can Senior Citizens Avail Term Insurance?

Is Group Term Life Insurance Provided By Employer Sufficient?

5 Things To Consider While Buying Term Insurance Plan

How To Change The Nominee in Term Insurance?

Steps on How to Buy Term Insurance Online

Planning For Children's Future

What Happens if you Hide Facts in your Term Insurance?

Is There Any Tax Benefit on Term Insurance?

How to Identify Term Insurance According to Your Needs?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Best Investment Plans for Children - Secure Your Child's Future

Which Death Type Does Your Term Plan Not Cover?

Endowment Plans vs Term Plans: Understanding the difference

8 Factors to consider before choosing a Critical Illness Insurance

Why Term Plan Should Be The First Step To Securing Your Future?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

5 Term Insurance Benefits for Single Women

Know How to Invest at Every Age for Larger Returns

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

9 Most Frequently Asked Questions on Term Insurance

6 Reasons That Make Term Insurance a Must Buy

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

What Should You opt for - Limited or Premium Pay?

Make Your Online Term Plan Your Familys Monthly Payout

Insuring Against Disability With Disability Insurance Rider

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Busting Myths and Facts About Term Insurance Policies

While Buying Term Insurance Compare Features, Not Just Premiums

Why Should You Not Take A Term Plan Without Medical Test in India?

Why Term Insurance Is Better Than ULIP?

Planning For Son or Daughter's Wedding

Term Plan with Spouse Cover

5 Benefits of Early Retirement Planning

Tax Benefits of Term Insurance in India

Insuring Protection Against Death With Death Insurance Rider

Eligibility Criteria for Buying Term Insurance in India

Gift Your Father A Term Insurance Plan This Father's Day

Can Term Insurance Plans Be Purchased As A Gift?

Different Types of Premium in Term Insurance

Ensure Protection Against Death, Disease & Disability With Life Insurance

Can You Increase Your Term Insurance Cover?

Is It Good To Buy A Term Insurance Plan In 2022?

Is Term Life Insurance Plan an Investment or Expense?

Term Insurance Calculator - Everythng You Need To Know

Can I Extend the Tenure of My Term Insurance Plan?

Is Life Insurance Investment Worthy Enough

Term Plans are Definitely Cheaper than You Think!

10-Year Term Life Insurance Policy - Explained in Detail

What All Documents Required For Term Insurance In India?

Why Premium Amount for Term Insurance is So Low?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Term Insurance with Critical Illness

Why Buy Term Insurance Even at Rising Rates?

What are incremental term insurance plans?

Why Term Insurance Is Important in times of COVID-19?

Individual Life Insurance vs. Group Term Life Insurance

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

4 Things To Expect From Your Term Insurance Plan in India

Is a Term Insurance Policy Portable?

How Much Term Life Insurance Cover Do I Need in India?

Why Should New Parents Buy Term Life Insurance?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Term Insurance Basics You Should Know

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Importance of Term Insurance at Every Stage of Your Life

8 Things To Do After Buying Term Insurance

What Are the Best Term Insurance Plans for Planning Retirement?

What is Insurance Premium - A Detailed Guide

Cost of Term Insurance Likely to Increase Soon

What Are Insurance Riders and How to Choose Them in a Term Plan?

Term Insurance – Why You Must Include In Your Financial Planning?

9 Ways to Help Family Members in Financial Trouble

Calculating Term Insurance Premium

What Should Be The Duration Of Your Term Plan in India?

What Types of Deaths Are Covered in a Term Insurance Plan?

Online vs Offline Term Insurance: Which Is The Better Option To Buy