GENERAL KNOWLEDGE

Detailed explanation-1: -A nominee is the person who shall receive the death benefit in case of an unfortunate demise of the policyholder during the policy tenure. The nominee is appointed by the policyholder.

Detailed explanation-2: -Nomination is the process of determining one person or persons who will receive the benefits from the life insurance policies in case of any casualties. The nominee in life insurance can be anyone, per the policyholder’s choice. In general, the nominee in insurance is a close relative.

Detailed explanation-3: -The designated heir is known as a life policy beneficiary or nominee. The beneficiary can be any person whom the policyholder trusts. As a policyholder, you have the option to change the nominated person at any point if required. However, if your beneficiary is a minor, you need to assign a custodian.

Detailed explanation-4: -If the insured passes first, then the beneficiary’s heirs or estate will receive the death benefit. If there are no beneficiaries left alive at the insured’s death, the death benefit will be added to the insured person’s estate.