Provide nomination while buying policy to ensure smooth payouts

If I want to change the nominee in my insurance policy do I have to inform the nominee and get his signature? My elder brother who is in Chennai is the nominee in my policy. Now I want to make my wife the nominee – Prateek Kashyap

Insurance is a legal contract wherein the nominee is provided the benefits under the policy after the demise of insured. So, it is important that the policyholder provides nomination to avoid any hassles at the pay-out stage. The process of nomination is extremely simple, all the proposer has to do is intimate the change in beneficiary by emailing the details to the life insurers or any other requirements your specific insurer may have. There is no requirement of consent from the existing nominee.

I had purchased a life insurance policy endowment policy three years ago and the premium is Rs 90,000. I pay Rs 45,000 in two installments. I think the premium is too much. Can I reduce the premium and still continue with the policy? I don't mind a lower maturity amount, but I don't want to discontinue policy. – Abhinav Shukla

Discontinuing the policy is not advisable because it is tied to a financial objective you had set for yourself three years ago. The best course of action would be to either get in touch with your insurer or refer to your policy document. You can opt for other modes of payment – annual, semi-annual, quarterly or monthly – which will help you to distribute the financial burden evenly.

The writer is MD & CEO, Edelweiss Tokio Life Insurance

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