Changing Sbi Life Insurance Nominee: A Step-By-Step Guide

Choosing a nominee for your SBI life insurance policy is an important decision, as the nominee will be responsible for receiving and managing the death benefit on behalf of your beneficiaries. When selecting a nominee, it is crucial to consider who will be capable of handling the financial and emotional aspects of managing the policy proceeds. While a nominee can be a spouse, parent, child, or any other trusted individual, it is essential to ensure they are financially responsible and able to make sound decisions. In addition to a primary nominee, it is also beneficial to designate one or more contingent nominees, who will receive the death benefit if the primary nominee is unable or unwilling.

Who can be a nominee?

When choosing a nominee for your SBI life insurance policy, it is important to select someone who is capable of managing the financial proceeds of the policy in your absence. This person should be someone you trust to handle financial matters on your behalf and make sound financial decisions. They should also be able to handle the emotional aspect of managing the policy proceeds, as this can be a difficult and stressful task.

The nominee can be a spouse, child, parent, or any other person chosen by the policyholder. If you have a minor child, you may want to choose a guardian for them as your nominee, as the guardian would be responsible for managing the proceeds on behalf of your child until they reach legal adulthood.

It is important to carefully consider your choice of nominee, as they will be responsible for receiving and managing the death benefit on behalf of your beneficiaries. In addition to a primary nominee, you may also want to consider naming one or more contingent nominees. A contingent nominee will only receive the death benefit if the primary nominee is unable or unwilling to do so due to circumstances such as illness or death.

The policyholder should communicate their choice of nominee to their insurer and keep their nominee information up to date. It is also a good idea to inform your nominee of their designation and discuss their responsibilities and expectations for managing the death benefit on your behalf.

In terms of the nomination facility, SBI allows for nomination in favour of one person only. However, nomination in favour of more than one person (up to 2 persons) is allowed in jointly operated locker accounts with common consent. Nomination can be made, cancelled, or varied by the account holder at any time during their lifetime, and witnesses are required for these processes.

Choosing a nominee

A nominee for a life insurance policy is a person who receives the death benefit upon maturity. It is important to choose a nominee wisely, as this person will be responsible for managing and distributing the insurance proceeds. Here are some key considerations to keep in mind when selecting a nominee for your life insurance policy:

Relationship with the Nominee

The nominee should ideally be someone with whom you have a close personal relationship, such as a spouse, child, or parent. This ensures that the benefits will go to someone you trust and who will use the funds responsibly in the best interest of your dependents. It is also important to consider the age and health of the nominee, especially if they are expected to manage the funds over a long period.

Financial Dependents

When choosing a nominee, it is essential to ensure that they are either financially dependent on you or clearly understand the needs of your financial dependents. This helps ensure that the insurance payout is used to support those who rely on your income for their living expenses and future needs.

Nomination Change Procedure

Life circumstances can change, and you may need to update your nominee accordingly. For example, consider situations such as the birth of a child, the death of a nominee, divorce, or remarriage. It is important to be proactive in updating your nominee as the insurance provider is obliged to release the policy proceeds to the last mentioned nominee(s).

Personal and Professional Background

Consider the personal and professional background of your nominee before designating them. Assess their financial literacy, ability to make sound financial decisions, and whether they have a stable background. This will increase the likelihood that they will handle the insurance benefits wisely.

Communication and Understanding

Clear and open communication with your nominee is crucial. Ensure they understand their role and responsibilities, and discuss your expectations to avoid any potential misunderstandings in the future. It is also advisable to integrate your life insurance nomination into your broader planning strategy for your estate. Consult a financial advisor or estate planner to ensure that your nominee designation aligns with your overall plans for asset distribution and long-term financial goals.

Types of Nominees

There are several types of nominees to consider when making your decision:

• Individual Nominee: A single person, typically a close family member, who receives all the insurance benefits.
• Multiple Nominees: Naming more than one person to receive the insurance benefits, with the policyholder specifying the percentage of the sum assured that each nominee will receive.
• Contingent Nominee: A secondary nominee who receives the insurance benefits if the primary nominee is unable or unwilling to accept the payout.
• Trust Nomination: The policy benefits are assigned to a trust instead of an individual, with a trustee managing and distributing the benefits according to the policyholder's instructions.

Eligibility for Nomination

According to the Insurance Laws (Amendment) Act, 2015, immediate family members such as spouses, children, and parents are beneficially entitled to receive the claim amount over any other legal heir. This gives them absolute right over anyone else to claim the death benefit. While it is not necessary to choose a family member as a nominee, non-family member nominees will receive the death benefit as a custodian, and legal heirs may claim the benefit.

In conclusion, choosing a nominee for your life insurance policy is an important decision that requires careful consideration. By selecting the right nominee, you can ensure that your insurance benefits are distributed according to your wishes and provide financial security for your loved ones.

Changing nominee process via Internet Banking

Changing your SBI life insurance nominee through internet banking is a straightforward process. Here is a step-by-step guide to help you through the process:

Firstly, it is important to understand who can be a nominee. A nominee can be a spouse, parent, child, or any other individual you trust to handle financial matters. It is essential to select someone who is financially responsible and able to make sound decisions. If you have a minor child, you may want to choose a guardian as your nominee, who will manage the proceeds until your child reaches the age of maturity.

Now, to change your nominee via internet banking, follow these steps:

• Log in to your Online SBI account.
• Navigate to the "Requests & Enquiries" section.
• Click on "Online Nomination".
• Choose the relevant account number for which you wish to change the nominee.
• Fill in the new nominee's details accurately and submit the request.

It is important to note that you can change your nominee as many times as needed during the policy term. Additionally, ensure that you keep your nominee information up to date and inform your insurer of any changes. By following these steps, you can conveniently update your SBI life insurance nominee through internet banking.

Changing nominee process via YONO app

To change the nominee on your SBI life insurance using the YONO app, follow these steps:

Firstly, log in to the YONO app. From the app's home screen, navigate to the 'Services & Request' section. Here, you will find an option for 'Account Nominee'. Click on this option, and then select 'Manage Nominee'.

You will then need to select the relevant account number from the drop-down menu. Once you have selected the account, fill in the nominee details as required. Finally, submit your request.

It is important to note that nomination can be made in favour of one person only. However, in the case of jointly operated locker accounts, nomination in favour of more than one person (up to two persons) is permissible with common consent. Additionally, nomination can be made in favour of a minor. In such cases, the natural guardian will receive the amount on the minor's behalf until they attain majority.

The process of changing the nominee is straightforward and can be completed quickly through the YONO app. By following these steps, you can easily update your SBI life insurance nominee details.

Changing nominee process via Branch

Changing the nominee on your SBI life insurance policy is a straightforward process that can be completed through the SBI branch. Here is a step-by-step guide on how to change your nominee via the branch:

Step 1: Visit the SBI Branch:

Start by locating your nearest SBI branch with the branch locator on the SBI website or mobile app. You will need to visit the home branch where you originally purchased your insurance policy.

Step 2: Obtain the Necessary Form:

Once you reach the branch, request the form required to change the nominee on your life insurance policy. The branch staff should be able to provide you with the correct form.

Step 3: Fill Out the Form:

Carefully fill out the form with the new nominee's details. Ensure that you provide accurate and up-to-date information. The form will likely require personal information about yourself and the new nominee, including full names, dates of birth, addresses, and your relationship to the nominee.

Step 4: Provide Supporting Documentation:

Along with the form, you may need to submit supporting documents. These documents typically include proof of your identity and the new nominee's identity, such as passports, driver's licenses, or other accepted forms of ID. Additionally, you may need to provide documentation supporting your relationship with the new nominee, especially if they are not an immediate family member.

Step 5: Witness Signature:

According to SBI guidelines, any changes to the nomination require a witness. Make sure that all account holders sign the request form, and have a witness sign as well.

Step 6: Submit the Form and Documents:

Submit the completed form and supporting documentation to the branch staff. They will review your request and guide you through any additional steps or requirements.

Step 7: Follow-up and Confirmation:

After submitting your request, the branch staff should provide you with a confirmation or a reference number. Make sure to keep this safe. If you do not hear back within a reasonable amount of time, follow up with the branch to ensure that your request is being processed.

Remember that choosing a nominee is an important decision. Consider your unique circumstances and select someone you trust to handle financial matters responsibly and effectively. It is also advisable to keep your nominee information up to date, especially in the case of life insurance, to ensure a smooth claims process if the need arises.

Frequently asked questions