When buying a life insurance plan, you are required to choose a nominee and furnish their details in the policy form. A nominee is someone who will receive the sum assured if you pass away within the policy period. They are the beneficiaries of the policy, therefore, it is important to choose your nominee wisely. Nominees can only be individuals who are related to you and have an insurable interest in you. Parents, siblings, children, or spouse are usually chosen as nominees.
Though you have to pick a beneficiary when buying an insurance plan, you might want to change the nominee or their details after investing in the policy. There are numerous reasons for changing your nominees. For instance, if you appointed your spouse as the nominee and are going through a divorce with him/her, you might want to change the nominee from your spouse to your child or parents.
Can you change nominee in LIC policy online?
With the launch of LIC’s e-services, policyholders have been given the opportunity to access the details of their policies with just a few clicks. The e-services portal allows customers to view policy status, claim status, pay the policy premiums, and so on. However, the change of nomination facility is not available online yet.
Changing your nominee is an important process and therefore it is advisable to visit your nearest branch to do that.
Procedure to change nominee
The procedure to change the nominee is fairly simple and hassle-free in nature. You can make the change during your policy term any number of times. For all the policies with a sum assured below RS.75,000, the first cancellation or change of nomination is done free of cost. A fee is charged from the second time onwards.Mentioned below is the procedure for changing nomination:
- The policyholder is required to send a notice to Life Insurance Corporation of India in Form 3750.
- The nomination must be endorsed.
- Following documents are mandatory for this procedure:
- Relation proof of the policyholder and the individual being nominated
- Policy bond (for endorsement)
- Form 3750
- A photocopy of the LIC policy
- For all the policies above Rs.75,000, the following fees is charged for cancellation, change of nomination, or first nomination:
- Rs.50 for policies issued in electronic form
- Rs.100 for p