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Health Blog
05 Oct 2023
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The rising cost of healthcare services has indirectly led to the increase in the number of people who are purchasing a health insurance plan, both online and offline. The policy helps in coping with this increased cost of healthcare, especially for those who are not able to afford it easily during medical emergencies. However, often times most buyers tend to ignore one aspect of the process: naming a nominee.
Nomination in health insurance refers to the process of selecting a person who will receive the policy benefits in case of the policyholder's demise. It is a crucial step in ensuring that the policy benefits are passed on to the intended beneficiary. The person nominated by you is called the nominee.
Here are some reasons why it is important to name in a nominee in the policy:
Nomination in health insurance ensures that the policy benefits are passed on to the right beneficiary in case of the policyholder's demise. This helps in the smooth settlement of claims and avoids any legal complications that may arise due to the absence of nomination.*
The absence of nomination can lead to disputes among family members over the distribution of the policy benefits. This can create unnecessary tension and bitterness among family members. Nomination ensures that the policy benefits are passed on to the intended beneficiary, thus helping one avoid any disputes.*
Health insurance provides financial security to the policyholder and his/her family members in case of medical emergencies. Nomination ensures that the health insurance benefits are passed on to the family members, thus providing them with financial security even after the policyholder's death.*
Nomination in health insurance saves time and effort in case of the policyholder's demise. The nominee can easily claim the policy benefits without going through any legal formalities, thus saving time and effort.*
The sudden demise of the policyholder can be emotionally and financially overwhelming for the family members. Nomination in health insurance reduces the burden on the family members by ensuring that the policy benefits are passed on to the intended beneficiary.* Also Read: Impact Of GST On Hospital Room Rent
Here are some of the types of nominee who get the health insurance benefits on your behalf:
A nominee who is your immediate family member is called a beneficial nominee. It is important to note than only an immediate family member can be named as a beneficial nominee.
A nominee who is below the age of 18 years at the time of being named as a nominee is called a minor nominee. When naming a minor as a nominee, you are also required to name an adult as an appointee for the nominee. If something unfortunate were to happen to you during the policy term while the nominee is still a minor, the appointee will receive the benefits; holding on to it till the nominee is of legal age.
You have the provision of naming more than one nominee in your policy. You can name multiple nominees, among whom the benefits will be distributed. Also read: Types of Health Insurance
Nomination in health insurance is a simple process that can be carried out at the time of buying the policy or at any time during the policy period. The following are the steps involved in nominating a person in health insurance:
The first step in nominating a person in health insurance is to fill the nomination form. The form can be obtained from the insurance company or downloaded from their website.
The next step is to provide the details of the nominee such as the name, age, address and the relationship with the policyholder.
The policyholder needs to specify the percentage of share that the nominee will receive in case of the policyholder's death. If there are multiple nominees, the policyholder needs to specify the percentage of share for each nominee.
Once the form is filled, the policyholder needs to submit it to the insurance company along with other required documents.
Nomination in health insurance is a simple yet crucial process that ensures that the policy benefits are passed on to the intended beneficiary in case of the policyholder's death. It provides financial security to the family members and reduces the burden on them during the difficult times. For any other doubts related to nomination or other aspects of the policy such as health insurance claim, you can get in touch with an insurance agent. *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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