New Framework for Nomination of Insurance Nominees

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Buyers of life assurance, accident or health policies can nominate their beneficiaries under the Insurance Nomination law that took effect this month.

The law finally clears up ambiguities relating to beneficiary nominations under previous legislation.

Under the new framework, policy-holders have two options in terms of nominating beneficiaries.

One is a trust nomination, through which a policy-holder has to give up all rights to the policy. Such rights can be regained only with the consent of all nominees.

The second option is a revocable nomination, in which a policy-holder retains the ability to unilaterally change, add or remove nominees.

For more info, refer to this pdf by MoneySENSE.

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