Nominee: Why do we need a nominee, what will happen if the nominee is not made?
When you open a bank account or take an insurance policy, or invest in an investment plan, you are asked to enter the name of the nominee. But often the name of the nominee is not entered. It is left as it is. Even if the name of the nominee is entered, some errors remain. But many people think that what difference will it make if the account holder does not add the name of the nominee? Many people doubt what harm it does. What will happen to the account holder's amount if no nominee is appointed and some accident happens? Who can claim that amount? There are many questions in the mind of the account holder regarding who is right in the dispute of this amount.
Why is a nominee important?
The nominee's name is registered with a bank, insurance company, or investment. After the death of the account holder, his family does not have to reach out to anyone for financial help. Even if the account holder dies, his nominee gets compensation. But if someone does not link the nominee's name to the account, then his nominee has to face many difficulties. They cannot withdraw the amount deposited in the bank account. Families have to fight a court battle to prove that they are the nominees. Court proceedings take time. Time and money are wasted in proving the legal nominee. If the nominee's name is linked, the amount can be easily withdrawn from the account without any legal check.
Required in insurance policy
Nomination of an heir in a life insurance policy is now mandatory. But if you have not registered your name in the previous policy then get it done. Otherwise, there may be trouble ahead. Family members may have a mild fever. In the event of the death of the insured, his family members have to face legal difficulties for compensation. That's why it is necessary to write the name of the heir in the insurance policy.
What if the name of the heir is not mentioned?
If there is an account holder, the insured does not add the name of his nominee. He died. If someone does not claim that amount, then such amount will be forfeited. It is not inherited by his nominee. The bank has a claim on this amount. This amount is deposited in the bank.
How to register?
A provision can also be made as to who among the husband, wife, mother, and father should be appointed as nominees and how much share should be given to them. This provision is in accordance with the policy. There is an easy way to add a name to a bank account. For this, you will have to go to the bank and fill out an application. Now this facility has been made available in all nine. After updating KYC, you can register inheritance immediately.