Prices Increasing soon Prices Increasing Soon

What Happens to the Term Insurance Plan if Its Nominee Dies?

Nomination is an important part of financial planning. It is the best way to make sure that the benefits of your insurance or investment plans will be received by the appointed individual after your death. When we talk about term insurance, a nominee is an individual who receives the benefits of your term insurance plan in case of your unforeseen death during the tenure of the policy. However, what if the nominee dies during a term insurance plan? 

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
58.9 Million
Registered Consumer
Insurance Partners
26.4 Million
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:-

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

What Does Happen to a Term Insurance Plan if Its Nominee Dies During the Policy Term?

If the nominee passes away while the life assured is alive, in such cases, the nomination process becomes null and void. The life assured has the option to change the nomination. And, if the nominee dies after the demise of the life assured but before getting the claim payout, then the payout would be paid to the legal heirs.

To reduce the stress and disputes in the family, the best way is to update the nomination when needed. The amount should be given to the individual who needs it the most when you are not there with them.

Can You Change the Nominee in Term Insurance Plans Within the Policy Term?

Yes, changing the nominee is possible in term insurance plans within the policy term, but the current beneficial nomination will overtake and all the other older nominations will become invalid.

Who Can Be a Nominee?

Any individual in your family who are financially dependent on you will be affected financially in case of your unforeseen death. You are not allowed to nominate non-family members, distant relatives, strangers, or even friends because they may not be dependent on your financially.

Let’s understand this with the help of an example:

Rahul purchased a term plan at 30 years of age when he was not married. At the time of purchasing the plan, he nominated his 58-year-old mother to receive the life cover amount in case of Rahul’s death. But he forgot to change the details of a nominee even after his marriage or after the passing away of his mother.

Always ensure that the details regarding the nominee should be correct to avoid legal problems for your family.

Can I Appoint Minors as Nominees?

Yes, children can also be appointed as beneficial nominees on term insurance plans. Because in various cases, the main aim of buying a term plan is to protect your children’s future and support their dreams to become financially dependent. However, children who are below 18 years are called Minors and legally are not allowed to manage money. A guardian referred to as an appointee or custodian is important till the time children reach 18 years.

Features of Term Plan Beneficial for Nominees

  • Option of Claim Payout

  • Increasing life cover

  • Non-working Spouse Cover

  • Affordable premium rates

  • Easy to Buy

  • Waiver of premium benefit

Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying the plan.

What Does Happen If You Don’t Declare Nominees in the Term Plan?

If as a policyholder, you have not nominated anyone in your term plan, there is a well-established legal process that you need to follow to avoid any legal problems in the future. The spouse, father, son, or mother of the policyholder are classified as class I legal heirs. They are eligible to receive the death claim amount.

If you have not declared any nominee and left a will, in such a case the distribution will be done according to the Indian Succession Act, 1925.

Note: Know what is term insurance first and then buy a term plan for your loved ones.

Wrapping It Up!

To prevent any legal disputes in the future between the legal heirs and nominees, it is always recommended to nominate a family member. The life assured has the option to change the nominee as many times as desired. The older nominees are superseded by the newer ones. So, if you are changing your nominee, ensure that your policy with the insurance company is updated to avoid future disputes.

Note: Check out the best term insurance plan in India and choose one that suits your requirements.

Premium By Age

Choose Term Insurance Plan as per you need

Plans starting from @ ₹473/Month*
Term Insurance
4 crore Term Insurance
Term Insurance
6 Crore Term Insurance
Term Insurance
7 Crore Term Insurance
Term Insurance
7.5 crore Term Insurance
Term Insurance
8 Crore Term Insurance
Term Insurance
9 crore Term Insurance
Term Insurance
15 Crore Term Insurance
Term Insurance
20 Crore Term Insurance
Term Insurance
25 Crore Term Insurance
Term Insurance
30 Crore Term Insurance
Term Insurance
15 Lakh Term Insurance
Term Insurance
60 Lakh Term Insurance

Term insurance Articles

  • Recent Article
  • Popular Articles
02 Jul 2024

Term Life Insurance in Daman and Diu 2024

Daman and Diu, a union territory in western India, consists of

Read more
02 Jul 2024

Term Life Insurance in Andhra Pradesh 2024

Andhra Pradesh, a state in the southern coastal region of India

Read more
02 Jul 2024

Term Life Insurance in Sikkim 2024

Sikkim is a Northeastern Indian state bordered by Bhutan, Tibet

Read more
02 Jul 2024

Term Life Insurance in Punjab 2024

Punjab, also known as the Land of Five Rivers, is situated in

Read more
02 Jul 2024

Term Life Insurance in Chhattisgarh 2024

Chhattisgarh is a state known for its forests, majestic

Read more

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more

'Har Family Hogi Insured' Policybazaar's Vision...

Empowering Every Household: policybazaar's Commitment to Nationwide Coverage In a visionary move towards a

Read more

2 Crore Term Insurance Plan

Individuals can choose to buy term plan that offers a life cover (sum assured) of ₹ 2 crore. These plans are

Read more

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
Need Help? Request Callback
View Plans
Download the Policybazaar app
to manage all your insurance needs.