Limit of Nominees can be attached to a Term Insurance Policy?
Is there a limit of nominees can be attached to a term insurance policy? What I know is your friends cannot be the beneficial nominees of a life insurance policy. Also I know that I can buy 10 term insurance policies for 10 nominees. But here I want to understand if I can buy one single term-insurance policy where I have flexibility for 10 - 15 nominees.
Yes off-course, one can have numerous nominees in term life insurance plans. All nominees are treated as similarly interested individuals. It just means, it 1:1 ratio. The other method as you mentioned for doing it is to buy multiple policies into various strategies with numerous nominees. The best type of nomination is to allocate the policy to one's better half under Married Women's Property Act 1874.
Policy holders must designate a beneficiary (as stipulated under section 152 of Insurance Act) at the time of the proposal letter for life protection itself. The Nomination can be changed any number of times amid the term of the policy. Nominee for the life of the insured can be named as beneficiary under the policy – guardians, spouse, kids, kin, manager, and so forth. The nominee has no privilege on the policy or the policy monies amid the lifetime of the guaranteed.
Where the chosen one is a minor, the policyholder is encouraged to select another senior individual as a 'Nominee' who won't just get the cash for the minor's benefit yet additionally will attempt to spend for the minor's welfare. Henceforth care ought to be taken to name just an exceedingly capable and firmly related individual as a representative / appointee.