July 18, 2024

Who is a Candidate?

In the nomination procedure, the policyholder picks a beneficiary to receive plan benefits in case of a death claim. In the event of a misfortune, the insurance company pays the policy’s proceeds to the named beneficiary, also known as the nominee. The policyholder designates the beneficiary who wants to receive the financial advantages in an unfortunate event.

What is the Significance of a Candidate?

The policyholder selects the candidate. You must also provide the nominee’s information when signing up for online term insurance. The nominee may be a relative. You may nominate your mother, father, wife/husband, son, or daughter. In certain instances, the term policy can also protect relatives such as nieces, nephews, and aunts. However, the policyholder must complete the required paperwork to include distant relatives. If you designate a distant cousin or acquaintance as the beneficiary, it is essential to demonstrate the insurance interest. Your application may only be allowed if you demonstrate this to the company’s satisfaction.

What is the proportion of nominees who file a death claim?

When submitting a claim, the policyholder must provide the nominees’ names and the proportion of the benefit each nominee will receive. Therefore, the allocation percentage should be mentioned on the nomination form so that claims may be processed efficiently and death benefits are allocated according to the policyholder’s chosen ratio.

Advantages of Nomination Capability

During the processing of a death claim, the policyholder will choose a nominee to receive the death benefit through the nomination service. The promised amount plus relevant bonuses will be paid with the death benefit. The nomination facility serves the principal objective of life insurance. The insurance contract safeguards the policyholder’s interests. In the event of the tragic demise of the policyholder, the beneficiary, or nominee, obtains the cash benefit. The contract expires once the death benefit has been paid.

Ability to nominate any individual – The policyholder may select a nominee. The policyholder should ideally choose a responsible individual with whom they have complete faith to satisfy the family’s needs in their absence. If the policyholder can demonstrate an insurable interest, they can choose a friend or distant relative as a candidate.

Cancellation of candidate – The cancellation or modification of nominees is permissible at any moment.

Nomination information on the insurance policy – The nomination information is displayed on the insurance policy. The term insurance nominee‘s presence on the insurance agreement satisfies the legal responsibilities.

Candidate Particulars:

The following nominee information should be provided to the insurance company:

  • Name
  • Age
  • Address
  • The policyholder’s relationship with the nominee

Numerous Nominations:

You may choose numerous nominees so that each nominee receives an equal financial reward. Distributing the benefit according to the life insurance policyholder’s chosen percentage is also feasible. You must understand the insurance company’s policies to execute the option according to your needs. The policyholder must offer a substitute if the nominee is younger than 18 years old. A minor is ineligible to receive the money, which should be paid to the policyholder’s designated beneficiary.

Change in Nominee:

The policyholder can modify the nominee’s information. They can even alter the nominee during the policy’s duration. The person can receive the nomination form from the insurance company either online or offline. The completed form should be submitted to the insurance company to update the details efficiently.

To avoid disputes in claims processing, the insurer should provide the policyholder with a written acknowledgement. When the nominee’s name is updated, the most recent information will supersede any earlier details. There is no restriction on changing the nominee throughout the policy. If the nominee passes away before the policy term, the policyholder is responsible for changing the nominee. The policyholder is responsible for updating the nominee’s information whenever the nominee’s status changes.

If No Candidate is Found:

If the policyholder or term insurance nominee does not supply the nomination information and ceases to exist during the policy term, and if the nominee’s information has not been updated with the insurance company, the following rules apply:

The insurance company will provide the claim money to the rightful successor of Class I. These include:

  • The insured’s partner
  • The insured’s offspring
  • Assurance’s father
  • Assurance’s mother

If the policyholder leaves a will, the subsequent steps are taken:

  • The procedure follows the 1925 Indian Succession Act.
  • The stipulations will allocate the claim amount.
  • The court issues the succession certificate, and the insurance company will pay the claim amount depending on the court’s ruling.
  • The insurance company may need a surety bond, a joint discharge declaration, or a waiver of legal evidence.


The nomination facility safeguards the insured’s and the insurer’s interests. The term insurance provider will disburse the death benefit per the information provided on the nomination form – if the nominee’s information, such as name and address, changes, the details must be updated immediately.

Garth Gregory

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