What Happens To Term Insurance Plan With No Beneficiary
Close
Close

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

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

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

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life
  • 10th Mar 2021 |
  • 1,631

When a person buys a term insurance plan, the primary inheritor of the sum assured is generally their heir, such as a spouse or a child. This implies that in the unfortunate event of the policy holder’s death, it is the heir, also known as the beneficiary or the nominee, who is paid the death benefit. However, what happens to a policy if there is no term life insurance beneficiary? Let’s find out.

Situations under which there is no beneficiary in term insurance

Considering the fact that a term insurance plan is specifically bought with the intention of financially securing the future of an individual’s family members, it seems hard to think of a situation where there would be no beneficiary for a term policy. However, while a term insurance policy is bought to protect the family in the absence of the chief earning member, there could be a time where the beneficiary may meet an untimely demise before the insured. In such a case, there may be some confusion about who inherits the term insurance funds.

What happens if the beneficiary in term insurance passes away before the policy matures?

The sum assured is paid to the secondary beneficiary.

  • Generally, insurance companies ask for two names when buying a term insurance policy. One name is for the primary beneficiary, and the other is for the secondary beneficiary. This is specifically done for a situation involving the death or absence of the primary beneficiary. If the primary term life insurance beneficiary is no longer alive to claim the settlement, the sum assured is passed on to the secondary beneficiary. However, if both the beneficiaries are absent, then the following two courses of action are considered.
  • The sum assured is paid to the policyholder’s other legal heirs. If both the primary and secondary beneficiaries have passed away in an unfortunate incident, the policy money is passed on to the policyholder’s other legal heirs. This can be determined by going through the will of the policy owner.In case there have been no legal heirs mentioned in the will, the succession certificate holder will be considered an heir and the policy money will be passed on to the individual.
  • The sum assured is paid to the policyholder. If the original beneficiary is no more around to claim the settlement and there are no other legal heirs or nominees, the sum assured is paid to the policyholder if they survive the term. However, this can only be done if the policy offers survival benefits.

Stay protected with Kotak Term Plan

Kotak Term Plan offers a comprehensive term plan with many advantages. Here are some of its attractive features:

  • With Kotak, one can get a minimum or a maximum sum assured as per their needs.
  • Affordable annual premiums that can fit anybody’s budget.
  • The plan offers additional riders, such as the Kotak Permanent Disability Rider, Kotak Critical Illness Plus Rider, etc.

To sum it up

The purpose of buying a term life insurance policy is to secure the future of one’s family. However, it is essential to know what happens to insurance funds in case of any eventuality. It helps to nominate a secondary beneficiary in term insurance and have a will in place to avoid any confusion in the end. Unclear wills and the absence of a backup nominee can also lead to disagreements and family feuds amongst legal heirs. So, make sure to take care of these aspects well in advance.

Kotak e-Term Plan

Download Brochure

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

Term Life Insurance Plan for Smokers vs Non-Smokers

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

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

Term Insurance Plans and Policies for Smokers

Why does every working women need life insurance?

Why is it important to buy term insurance plan?

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

All About Term Insurance Inbuilt Coverage

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

Should you have more than one nominee in your term insurance?

Comparing Term Plans – What Should You Look Out For

Term Plan with Spouse Cover

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

Importance of Term Insurance at Every Stage of Your Life

Understanding Term Insurance Riders

4 Methods to Calculate How Much Term Insurance You Need

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

Term Insurance with Critical Illness

Do You Need Term Insurance Cover After Retirement?

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

Individual Life Insurance vs. Group Term Life Insurance

Is ₹1 Crore Term Insurance Good Enough Cover?

Make Your Online Term Plan Your Familys Monthly Payout

Should you buy a Renewable Term Life Policy?

5 Things To Consider While Buying Term Insurance Plan

How Does A Term Life Insurance Work in India?

8 Things To Do After Buying Term Insurance

Calculating Term Insurance Premium

How do I Calculate My Term Insurance Premium

What is Insurance Premium - A Detailed Guide

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

How Does Term Life Insurance Work? Learn the Benefits

Side Effects of Covid-19 Booster Doses

Endowment Plans vs Term Plans: Understanding the difference

5 Term Insurance Benefits for Single Women

Advantages of Buying Term Insurance in Your 50s

6 Types of Death not covered in Term Insurance Plan

Why Term Insurance Is Better Than ULIP?

4 Reasons Why You Need Critical Illness Cover

4 Things To Expect From Your Term Insurance Plan in India

What are the Documents Required for Term Insurance Plan?

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

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

What is Critical Illness Policy?

Why Premium Amount for Term Insurance is So Low?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Difference Between Term Insurance and Endowment Plan

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

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

Why Should New Parents Buy Term Life Insurance?

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

9 Most Frequently Asked Questions on Term Insurance

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

Can You Increase Your Term Insurance Cover?

Form 16, Form 16A, and Form 16B?

Different Types of Premiums in Term Insurance?

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

Planning For Son or Daughter's Wedding

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

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

8 Benefits of Term Insurance You Should Know

10 Ways to Mentally Refresh After a Stressful Day

All you need to Know about Term Insurance Plans for housewives

9 Point Guide on how to File Income Tax Return Online

What All Documents Required For Term Insurance In India?

Top 3 Reasons Why You Should Buy A Term Plan Now

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

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

Insurance Policy for Housewife In India

Zero Cost Term Insurance Plan: What is & Should you buy it?

Should You Buy a Term Plan After 40?

Insuring Against Disability With Disability Insurance Rider

How Much Cover Should I Take In A Term Plan?

Insuring Protection Against Death With Death Insurance Rider

6 Reasons That Make Term Insurance a Must Buy

Which Death Type Does Your Term Plan Not Cover?

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

Insuring yourself against Ill Health with a Critical Illness Rider

All about Online Income Tax Calculator

Different Types of Protection Plans

8 Types of Death not covered in Term Insurance Plan

Know How to Invest at Every Age for Larger Returns

How Much Term Insurance Do I Need

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

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

How to Identify Term Insurance According to Your Needs?

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

9 Ways to Help Family Members in Financial Trouble

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Busting Myths and Facts About Term Insurance Policies

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

Term Insurance Basics You Should Know

Planning For Children's Future

Why Buy Term Insurance Plan With a High Cover?

Why You Must Include In Your Financial Planning?

What is a term insurance plan with a return of premium, and how does it work?

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

Steps on How to Buy Term Insurance Online

What is Term Insurance? Term Plan Meaning and Definition

5 Benefits of Early Retirement Planning

Why 1 Cr Term Plan Is Necessary For Family?

Term Insurance Age Limit – Term Plan for All Age Groups

Ensure Protection Against Death, Disease & Disability With Life Insurance

10-Year Term Life Insurance Policy - Explained in Detail

Increasing Term Insurance and Riders

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

3 Things to Consider When Buying Term Insurance, If You are Single

Protection for your family

Is There Any Tax Benefit on Term Insurance?

Why Should You Buy Term Insurance in 2022?

Term Insurance Calculator - Everythng You Need To Know

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

Is Term Life Insurance Plan an Investment or Expense?

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

Tips to Choose the Right Term Period for Term Insurance Plan

Why should single women purchase term life insurance?

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

Does Term Insurance Cover Accidental Death?

What Is a Renewable Term Insurance Policy?

Cost of Term Insurance Likely to Increase Soon

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

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

Is term Insurance Needed for People With No Dependents?

How Not To Get Your Term Insurance Claim Rejected

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

While Buying Term Insurance Compare Features, Not Just Premiums

Why Spending Time with Friends is Essential for Your Mental Health?

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

Advantages & Disadvantages of Term Insurance in India

Should You Have Multiple Term Life Insurance Policies?

Why Buy Term Insurance Even at Rising Rates?

Can I Get Term Insurance on Behalf of My Spouse?

Can I Extend the Tenure of My Term Insurance Plan?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Everything About Claim Settlement Ratio for Term Insurance

How To Choose the Right Term Insurance Plan?

What Happens if you Hide Facts in your Term Insurance?

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

How Much Term Life Insurance Cover Do I Need?

भारत में जीवन बीमा कितने प्रकार के होते हैं?

What Are the Best Term Insurance Plans for Planning Retirement?

What is a short term insurance policy?

Is Life Insurance Investment Worthy Enough

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

Insuring Against Accidents with an Accidental Death Insurance Rider

Can Term Insurance Plans Be Purchased As A Gift?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Why Married People Should Buy Term Insurance Under MWP Act?

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

Term Insurance: Smokers vs Non-Smokers

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

Is a Term Insurance Policy Portable?

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

What Should You opt for - Limited or Premium Pay?

What Is the Correct Age to Buy Term Insurance?

Eligibility Criteria for Buying Term Insurance in India

Buying A Term Insurance Plan? Take These Factors into Account

How to Compare Term Insurance Online

Can Senior Citizens Avail Term Insurance?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Do Beneficiaries Pay Taxes on Term Insurance?

8 Factors to consider before choosing a Critical Illness Insurance

Tax Benefits of Term Insurance in India

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Is Group Term Life Insurance Provided By Employer Sufficient?

Term Plans are Definitely Cheaper than You Think!

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

Choosing Riders for Insurance Plans

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

What are incremental term insurance plans?

Term Insurance With Riders In India

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

How to Surrender Term Life Insurance When You Have No Liabilities?

How To Change The Nominee in Term Insurance?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब