Why is Nomination in PLI Policy Important?
It is recommended for a policyholder to nominate an individual or a trust as the recipient of the assured sum in the unfortunate event of their demise against your Postal life insurance policy.
By doing so, they can spare their legal heirs from the burden and costs associated with acquiring legal ownership of the funds disbursed through the policy.
In the realm of insurance policies, the act of nomination holds immense importance. It serves as a pivotal safeguard, ensuring the smooth transfer of benefits and minimizing potential complexities.
Nomination in your Postal Life Insurance policy allows the PLI policyholders the power to designate rightful recipients who shall inherit the benefits accrued from the Postal Life Insurance policy in the unfortunate event of their demise.
Such a provision not only guarantees financial security but also offers peace of mind to the policyholder and their loved ones.
One of the main advantages of PLI Policy nomination lies in its ability to expedite and simplify the death claims settlement process. Without a valid nomination, the insurance company may encounter difficulties in determining the rightful beneficiaries.
This can result in protracted legal procedures and unnecessary delays in disbursing the policy benefits. By designating nominees, policyholders eliminate potential ambiguity and provide clarity to their insurance provider regarding the intended recipients.
However in case any of the legal heirs, nominee(s), or trustee(s) of the PLI policyholder have been accused of the policyholder’s murder, the POLI funds will not be disbursed to them unless they are acquitted with honor by a competent court of law.
Who can be nominated under PLI Policy
The owner of a Postal life insurance policy on their own life has the option, at the time of taking out the policy or at any point before it becomes due for payment, to designate the individual(s) or religious trust to whom they wish the funds secured by the policy to be paid in the unfortunate event of their death.
#What is the maximum nominee in PLI
The policyholder of the PLI policy can nominate one or more individuals as beneficiaries but a maximum of three. Such nominated nominees can be family members, dependents, or any other person of their choosing.
Additionally, policyholders possess the flexibility to allocate specific percentages of the policy benefits to different nominees, ensuring an equitable distribution according to their wishes.
Can Nomination in PLI Policy be Changed?
The policyholder has the option to cancel or modify a nomination at any time before the policy matures for payment. This can be done through an endorsement, additional endorsement, or a valid will, depending on the circumstances.
However, the PLI will not be held responsible for any legitimate payments made to a nominee mentioned in the policy document or a nominee endorsed on the policy and officially recorded in the PLI records, unless a written notice of cancellation or change is received by the Postmaster General/Head of Division before such payment.
What happens if the nominee dies before or after the PLI policy matures?
(a) In case the PLI policy matures for payment while the PLI policyholder is still alive, or if the nominee(s) or all the nominees pass away before the policy matures, the SA of the policy will be paid to the policyholder, or in the case of their death, to their heirs or legal representatives who possess a valid succession certificate.
(b) If the nominee(s), or if there are multiple nominees, at least one nominee, outlives the insured person, the sum assured by the policy will be paid to the surviving nominee(s).
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PLI Nomination Change Form-Download in fillable form.
Can minors be nominated in PLI Policy?
If the nominated individual in PLI policy is a minor, the policyholder has the authority to appoint any person to receive the policy funds in the event of the policyholder’s demise while the nominee is still a minor.
This appointment must be communicated to the Postmaster General/Head of the Division of DOP by submitting the necessary documents either during the policy application process or afterward.
Please note that it is important to obtain the consent of the appointed person at the time of making the appointment.
What is the fee for a PLI nomination change?
At present there is no fee for change of nomination in PLI Policy.
Right of Nominee in PLI Policy
A nominee named in a Postal life insurance policy holds a mere right to collect the funds payable under the policy upon the insured person’s death and provide a valid discharge to the insurer.
The nominee does not become the legal owner of the funds and is obligated to transfer it to the legal representative of the insured. Hence, the nominee functions solely as a receiver, subject to the provisions outlined in these rules.
#How many times we can change nominees?
There is no bar to changing to nomination in the PLI Policy before the maturity of the PLI policyholder can change the nominee under his insurance policy.
$How do I change my nominee name in PLI?
If you have access to the PLI customer portal you can check nominations online in your PLI policy under the option my policy. However, there is an option to add and delete the nomination online but the same is not applicable.
It is better to fill out the form to change the nomination and submit the same to the nearest CPC/Head Post Office of PLI. It will take a week to change the nomination and PLI will intimate to you.
Now you do need not to submit your original policy bond for correction, a letter issued and an updation of the same in the system is sufficient. Keep the nomination change intimation letter with policy documents.
In conclusion, nomination stands as a vital component within the realm of insurance policies. It empowers policyholders to safeguard the interests of their loved ones and facilitates a seamless transfer of benefits.
Through the act of nomination, individuals can leave a lasting legacy of financial security and protect their family’s well-being in times of adversity.
As responsible policyholders, it is incumbent upon us to recognize the importance of nomination and proactively utilize this powerful provision to fortify the foundations of our insurance coverage.
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