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Features
Ref. No. KLI/22-23/E-BB/492
If the term Insurance policy has no beneficiary, the assured sum is given to the secondary beneficiary. To know more about term policies in detail, Visit now
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.
Stay protected with Kotak Term Plan
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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.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
