What is a nominee, and why does every policy need one?
Short answer
A nominee is the person your insurer pays the claim money to if you die. Naming one, and keeping it up to date, helps your family receive the money faster and with less paperwork.
- A nominee is the person your insurer pays the claim to if you die.
- Without a nominee, your family may need extra legal paperwork, which takes time, before the money is paid.
- You can usually add or change a nominee at any time while the policy is active.
Ask most people who the nominee is on each of their policies, and many won't be sure. Yet it's one of the most important details in the policy.
What a nominee is
A nominee is the person you name to receive the money from your policy if you die. When a claim is made, the insurer pays the nominee.
Nominee and legal heir: not always the same
A legal heir is someone entitled to your estate under succession law or your will. In many cases your nominee and your legal heir are the same person, but not always. How the money is finally shared can depend on the law that applies and on who the nominee is. If you have questions about your own situation, a lawyer is the right person to ask.
What to check on each policy
- Is there a nominee at all? Older policies sometimes have none.
- Is it still the right person? Marriage, divorce or a death in the family can make a nomination out of date.
- If there's more than one, do the shares add up to 100%?
- If a nominee is under 18, is there an appointee? This is an adult who receives the money for the child.
You'll find the nominee on your policy schedule. To change it, contact your insurer: most let you do it online or with a short form.
How Policy Iris helps
Policy Iris lets you record the nominees for each of your policies in one place, starting with the names shown on your policy schedule. This is a record for you and your family. It doesn't change the nomination with your insurer.
Questions people ask
Can I have more than one nominee?
Yes. Most insurers let you name more than one nominee and set the share each one gets. The shares must add up to 100%.
What if my nominee is under 18?
You'll usually be asked to name an appointee, an adult who receives the money on the child's behalf until they turn 18.
Abhijit Pal, FIAI, FIA
Founder and actuarial reviewer
About 20 years as an actuary in life and health insurance and reinsurance
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