Steps To Change Nominee In LIC Policy

Mr. Desai (58-years-old) lives in Nagpur with his wife (56-years-old) and two sons. Mr. Desai purchased a LIC policy a few years ago and he mentioned his elder son as his nominee for his policy. But now, due to some family issues, Mr. Desai wants to change the nominee’s name. He wants to make his younger son his nominee so that he can take care of the entire family in Mr. Desai’s absence. Mr. Desai doesn’t know how to change the nominee in LIC policy.

Here we are going to acquaint you with what is a nomination? Besides, we will mention how to change the nominee in insurance like LIC so that people like Mr. Desai can enhance their knowledge regarding the procedure.

What is a Nominee?

A nominee is a person whom you appoint to receive the benefits of your policy in your absence. We just gave a short description of what is the meaning of a nominee? For your nominee/beneficiary, you should choose someone whom you can trust and know very well. Your nominee will take care of the coverage amount and will ensure that your family doesn’t face any financial difficulties when you are not with them. The financial experts always recommend that your nominee should be your spouse, brother/sister, children, or parents whom you can trust completely.

During the time of purchasing a policy, you need to fill up nominee details. If you don’t add this at the time of inception of your insurance policy, you may add it later. So, we assume now you know what a nominee is?

How to Change Nominee in LIC?

You can conveniently change the name of the nominee in insurance policies like in your LIC policy. You are also eligible to make this change several times during the policy tenure. All policy plans that offer a sum assured amount below Rs. 7,55,000 are eligible for free cancellations. A certain amount will be charged if you want to change the name for the second time.

• By filling the LIC nominee change form (form 3750), you need to intimate the Life Insurance Corporation of India.
• You should endorse the nomination through the LIC nominee change form

Documents that you need to submit for Change in Nominee Details:

You need to submit the below-mentioned documents if you want to change the nominee’s name in your LIC policy.

• Form 3750
• The relationship between the nominee and you, as a policyholder
• The policy bond for endorsement
• The photocopy of your LIC policy

Policies that offer a sum assured of Rs. 7, 55,000 and above, usually charge Rs. 50 for change of nominee, cancellation, and first nomination. This charge is applicable to all e-policies. For non-electrically driven policies, this charge is Rs. 100.

Can you Change the Nominee in LIC Policy Online?

With the help of LIC e-services, you can check your policy details online. You can conveniently view your policy status as well as claim status. You may pay your premiums online. But there is no option for LIC policy nomination change online. You can only change your nominee declaration in front of any agent. So, you need to visit the nearest branch of LIC to accomplish the process. However, with the growing digitalization, we may expect to get the facility of LIC policy nomination change online very soon.

Reasons to Change the Name of the Nominee

There should be a plethora of reasons (from personal to circumstantial) when you need to change the name of the nominee in your policy using a nominee change form. Have a look at some common reasons to do so.

Personal Reasons

• An ill-fated demise of your nominee
• Family tiff where the nominee is no more associated with your family or you don’t want to keep relation with him/her anymore
• You made the decision hastily and now you think someone else can be your nominee
• You met someone special and you want to replace your previous nominee

Other Reasons

• The name of the nominee is incorrect and you want to modify it
• You forgot to mention the correct relationship details with the nominee and now, you want to rectify it
• Your beneficiary’s information like birth date/year/month is incorrect and you want to fix it

Certain things you should remember while changing the name of the nominee in your LIC

• Always mention the full name of your nominee along with some official documents like a driving license, passport, etc. Ensure that the age and address are properly mentioned in the form. Don’t forget to specify the relationship between you and your nominee in the form.
• If you choose a minor nominee, don’t forget to mention all the details of the appointee. A minor can’t receive the claim and thus, he/she needs someone who is above 18 years. Submit all the details of the appointee like full name, address, age, gender, the relationship with the nominee, and so on.
• Once you submit the nomination form along with details, you will receive an acknowledgment letter from your insurer.
• For the single or joint-life of the minor, you may add alternation nominations.
• The policyholder’s life insurance policy doesn’t permit the nominee to alter or take control of the policy.
• If your declared nominee/beneficiary expires after your death and before the payment of the claim amount, then the amount will be given to the legal representatives of the nominee.

The Conclusion

Now, you have an adequate idea regarding what is the meaning of the nominee and how do you change the name of the nominee in your LIC policy. You must understand and go through form 3750 and should provide all imperative information properly. You should have a clear picture regarding the relationship between you and your nominee to avoid difficulties during the changing process.