When you buy a term insurance plan, you must have come across the word nominee, dependent, or beneficiary. These three words are integral to a term insurance policy cover. A term insurance coverage policy is designed to assist your family in case something were to happen to you in the future. It is a complete protection plan with a fixed payout amount.
The payout is received in the form of a lump sum or in the form of regular intervals (monthly, semi-annually, quarterly, or annually). The payout is predetermined at the time of purchasing the policy. An ideal sum assured should be between 15x to 20x of your annual income. The entire process of payout comes under the death benefit option. Every term plan comes with a death benefit that requires you to mandatory select a nominee. Note: Term policies are pure protection plans. They do not come with a survival or maturity benefit unless declared by the insurer.
Who can be the nominee?
As mentioned above, every term insurance cover policy requires you to select a nominee. It is mandatory for you to fill in the details of your nominee as accurately as possible. Your nominee can be your family member or members (spouse, children, or parents, or the entire family). Some insurance plans also allow parents-in-law, uncles, aunts, and adopted dependents, distant relatives, as nominees. In the case of distant non-blood relatives, it is crucial to provide the relevant documentation as proof to the insurance company. Failure to do the same might lead to rejection of the claim.
At Coverfox, you can avail of a free nominee assistance program that will ensure your nominee gets the rightful claim amount. Plus, you can manage all of this on-the-go with a single application.
