What is the process of Changing Nominee Name in LIC Online?

What is a Nominee in Life Insurance?

A nominee is a person selected by the life insurance policyholder to be his/her beneficiary and this person is entitled to receive the sum assured in the event of death of the policyholder. The nominee is selected by the policyholder and it can be anyone from the family including spouse, children, parents or a trusted family member etc. Moreover, the insured can even name more than one person as nominee.

If a policyholder forgets to add a nominee to his/her life insurance policy, the family of the insured will not receive any money or the death benefit. Hence, it is crucial for the policyholder to choose the nominee judiciously. However, if you miss to include a nominee while buying an insurance policy, it can even be done later during the tenure of the policy.

Key takeaways to note:

• The nominee is the beneficiary who is entitled to get the claim money or death benefit after the demise of the life insurance policyholder
   
• If the existing nominee dies during the policy term, the policyholder must change the nominee to another person
  Nominees should be added not just to insurance plans but also to bank account and similar schemes of investments

Can a minor be a nominee?

Yes. Minors or the children of the policyholder can be chosen as nominee. However, there has to be an appointee who should be an adult. This person can collect the funds for the nominee if the insured dies when the nominee is still a minor. However, it is not necessary for the appointee to be a guardian of the minor nominee.

The Process to Change nominee in LIC Policy

If you are wondering how to change the nominee in LIC policy, it is an easy process, which can be done several times during a policy term. The LIC policies with sum insured below INR 75,000 are entitled for free first cancellation and modifications of nomination. However, from the second time onwards, the insurer charges a minimal amount for change of nomination.

The following steps are required to follow to change the nominee details in your LIC policy:

• You can file form 3750 to notify the LIC of India
   
• You have to endorse the nomination process

Policies with sum assured INR 75,000 and beyond are available with a charge of INR 50 for making changes in nominations, cancelling nomination and for first nomination. This charge is levied on policies bought online. However, for policies availed offline, the charge is INR 100.

Documents Required to change Nominee in LIC Policy

Here are the documents needed to change nominee under a LIC policy:

• You need form 3750
   
• You must provide the proof of relationship between the policyholder and the nominee
   
• You also need policy contract (for endorsement), and
   
• You need the photocopy of LIC policy

Is it Possible to Change the Nominee in LIC Policy Online?

The e-services of LIC allows the policyholder to go through the details of their LIC policy online. The LIC’s official portal can be used for this purpose to view the claim and policy status. Besides, the portal can also be used to pay premiums of the plan online. However, the online facility doesn’t allow the policyholder to change the nominee details in a LIC policy. So, at present LIC nominee change online option is not available.

Hence, it is suggested to change the nominee details or to make declarations of the nominee by visiting the nearest LIC branch personally.

Reasons to Change Nominee

There could be several reasons to change nominee details in a LIC policy ranging from personal reasons to situational and so on. Below are some of the common reasons mentioned:

1. Some Personal Reasons Could Be:
• The ill-fated demise of your nominee
• Family feud because of which you may like to change the nominee details as you no longer want to be associated with the nominee anymore
• You are not happy with your instant nominee decision and want to rethink it by proposing someone else as the nominee
• You want to nominate a special person to replace the earlier nominee
2. Some Other Reasons Could Be:
• Nominee’s name or the spelling is incorrect and you would like to change it
• The relationship details of the policyholder and the nominee has not been mentioned correctly and you want to correct it
• Details of the nominee like date of birth/month/year is incorrect and require changes

Things to Consider While Changing Nominee Details

• Ensure to mention the complete name of the nominee as stated in the official papers of the nominee such as driving license and passport etc. in the LIC nomination change form
   
• Ensure to state the correct age and address as well as the exact relationship with nominee of the policyholder
   
• In case the nominee is a minor, you have to assign the details of an appointee because the minor cannot raise a claim unless he/she turns 18.  Hence, the nominee would need the help of an adult to do so on his/her behalf
   
• So, in such a case you also need to offer details of the Appointee such as the full name, address, age, relationship with the nominee, gender, and required documents etc.
   
• As soon as the policyholder files the application of changing the nominee details, the person will receive an acknowledgment in written from the insurer
   
• The policyholder can also add alternate/successive nominations for a joint or single LIC policy purchased for a minor

Consider the Below Things While Changing Nominee Details

Before changing the nominee details, remember the following things:

• During the lifetime of the policyholder, the nominee cannot make any changes or modify the LIC policy or take charge of it
• In case of death of the nominee after the demise of the policyholder but before collecting the death benefit by the insurer, the concerned amount would be paid to nominee’s legal representatives