nomination for term insurance

POSTED BY bharat shah ON October 18, 2010 12:42 pm COMMENTS (9)

i have a doubt about nomination in term insurance in particular .and for others in general:

whether can a married person nominate only his/her spouse, children or can he/she nominate his/her parents also? i have some doubt that even if a married person nominated his parents, say before marriage, as per law , the insurance money in case of insured death would be available to spouse and children. what is correct provision? 

9 replies on this article “nomination for term insurance”

  1. Kiran Srirama says:

    Here is the SC ruling on similar question for a Bank Account –

    Hope this helps

  2. Manish Bansal says:

    you Asked : is it that for married person , the insurance company would not accept nomination in favour of other than spouse and/or children? kindly enlight the matter.

    No a married person can also make his mother / father a nominee

  3. Manish Bansal says:


    As u asked if a person makes mother as nominee and dies then yes insurance co. will have to pay in name of mother only but if a person has made will and wife produces will to insurance co. then insurance co. will pay to Wife or as per WILL of person.

  4. Gaurang Desai says:

    @ Manish,

    Thanks for Info – was always under the impression that making a nominee is more than enough and now that makes it very important for everybody to make a Will

  5. bharat shah says:

    @dhawal sharma,

    what happens. in case policy taken prior to marriage , and nomination in favour mother not changed, and insured’s death occurs: whether the insurance company would pay to mother?
    is it that for married person , the insurance company would not accept nomination in favour of other than spouse and/or children? kindly enlight the matter.

    1. sidrana7 says:

      Insurance co will not follow up your personal relationship status through out policy life. the Onus is on Insurance holder to keep the nomination details up to date. Noways insurance co. can help you do that other than processing your paperwork.

      When the claim will be made, obviously legally the nominee will be the person/s getting the monies paid. Now this can be challenged by other claimants e.g. in your example spouse/kids after marriage. But the law sees whats in insurance policy document not in your real life.

      Hope it helps.

  6. Dhawal Sharma says:

    there is a clause in insurance called PRINCIPAL OF INSURABLE INTEREST..So a policyholder can nominate somone of his family (If married, then wife or son/daughter) only..A Bachelor can nominate someone from his family who is financially dependent on him..

  7. Gaurang Desai says:

    You can nominate any person and the nominated person will ONLY receive the policy moneys in the event of the policy becoming a claim by death – Insurance co’s have nothing to do with ur marriage/divorce etc 🙂

    1. Gaurang

      No , it does not work that way . Nominee is just a person who gets the money in his hand, its like caretaker , the unltimate recievers are the people who are legal heirs of the property , which will be governed by first the “WILL” and if will is not present then as per the succession laws .

      So if a person has made his wife as nominee for his insurance policy , but has not made any will saying that his wife should get 100% money , then even though wife is nominee , all the legal heirs of the person like children , will get the share


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