How to Change Nominee in LIC Policy? What are the Important Points that You Must Remember?

How to Change Nominee in LIC Policy? An Overview

Life insurance is the most important aspect of personal finance and it is a must-have for every individual. LIC is the earliest life insurance provider and well-respected insurance company in India. It offers a wide range of plans that suit the requirements of different individuals. It is advised to always nominate your family member while buying insurance or any form of investment to receive the sum insured in case of your demise. In this article, we are going to learn about how LIC nominee change online can happen hassle-free, the documents required for a change of nominee in LIC, and things to keep in mind while opting for a change nominee in LIC. 

What is Nominee in Life Insurance? 

A nominee is an individual who is entitled to receive the assured sum in case of the demise of the policyholder. The nominee can be your family member or a close relative whom you can trust. After the demise of the policyholder, the nominee receives the sum assured on the insurance policy and looks after the covered amount. The nominee makes sure that family members do not have to go through any financial crisis after the demise of the policyholder. In case you forgot to add a nominee to your policy, your family members will not be eligible to receive the claim amount. Therefore, it becomes important to choose the nominee carefully and make sure that the person is very well known to you and trustworthy. However, most people opt for their parents, siblings, or spouse as their nominee. Choosing a nominee is not only essential while buying insurance but also to your bank accounts, Demat account, and other investment schemes. In case you have not added a nominee while buying an insurance plan for yourself, you can do it later.

Key takeaways: 

• A nominee is a person who is entitled to receive the claim money after the demise of the policyholder. 
• A policyholder is required to change the nominee in LIC in case of the demise of the existing nominee. 
• You should add nominees to your insurance policies, bank account, and other investment schemes. 

How to Change Nominee in LIC policy? 

The policyholders may have to opt for a nominee change in LIC due to unavoidable reasons and one of the common reasons is the death of the nominee. When the nominee of your LIC policy dies, it becomes important to add a new nominee to your policy or you may have to opt for a LIC policy nominee change when you feel that the person is not trustworthy enough to be the nominee of your policy. The process to change the nominee in LIC policy is simple and hassle-free. 

You can opt for a change of nominee in LIC multiple times. However, all you have to do is give a notice in a form called form no. 3750 to the LIC (Life Insurance Corporation) and make sure to provide all the details of the new nominee of your insurance plan along with the policy bond, relation proof with the nominee, a xerox copy of the policy. You don't have to inform the existing nominee to change nominee in LIC. The policyholders need to keep in mind that they will not have to pay any charges for the first time on the nominee change in LIC if the sum assured on the policy is within INR 75,000 but from the second time onwards, they have to pay a certain charge. 

Points to Remember While Changing the Nominee

• The policyholder should provide the right information about the nominee in which the full name of the nominee, age, and address should be mentioned as per their official document. Also, you need to mention the relationship with the nominee correctly. 
• In case the nominee is minor, the policyholder has to mention the details of the appointee who is 18 or above. 
• The nominee is not entitled to make any changes to the policy or take control of it. 
   

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To conclude, having life insurance protects your family from financial loss in case of the demise of the policyholder. The insurance is useless if you have not appointed a beneficial nominee while buying yourself an insurance plan. Do your proper research and analysis on all the different insurance plans available in the market to make informed decisions. Also, opt for buying adequate insurance coverage that meets the financial needs of your family.