I got married last year but lost my husband in an accident recently. He had not been able to change the name of the nominee on his life insurance policy. Will I be entitled to it?
To begin with, please accept my condolences.
On the death of the insured, the nominee is entitled to receive the insurance amount, but not to the exclusion of all other heirs. The nomination only indicates the hand that is authorized to receive the sum. The amount paid would be considered a part of your husband’s estate, which is governed by the law of succession applicable to him and the heirs. As a spouse, you are an heir of your husband’s estate and can successfully claim a share of the amount from the nominee in a civil court.
If a person dies before paying the renewal premium for a unit-linked life insurance policy, even though it had become due, is the claim permissible?
Once the unit-linked insurance policy has completed three years, there is a provision for continuation of life cover even if premium has not been paid. Refer to the policy terms for more details.
What is a group pension scheme? Do life insurance companies offer such a scheme?
A group pension scheme is a product that an employer sets up for employees. All staff can be members. Most life insurers offer group superannuation products. A well-structured plan helps create an irrevocable fund during the working lifetime of the employees for pension benefits.
The employer can contribute up to 15% of basic salary of the employee towards this fund. The employee can also make voluntary contributions. Investment of up to Rs1 lakh a year by an employer for each employee is exempt from fringe benefit tax.
Readers are welcome to write in with their queries to firstname.lastname@example.org. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is T.R. Ramachandran, managing director and CEO, Aviva India.