Firstly, let’s take a look at who a nominee is. A nominee is basically an individual that you appoint at the time of taking out an insurance policy. In the event of the policyholder’s death, the nominee would automatically become entitled to receive all the benefits listed under the policy.
Just like with life insurance and personal accident insurance plans, it is advisable to assign a nominee for health insurance plans as well. This makes it easier for the intended individual to claim the benefits under the health insurance plan.
Generally, individuals purchasing health insurance miss out on assigning a nominee for their insurance plan. However, not assigning a nominee can be quite detrimental and can significantly delay the benefits offered under the plan from reaching the intended individual. Continue reading this article for comprehensive information on nominees, how to select the right individual, and the benefits that the nominee gets.
Adding a nominee in a health insurance plan is very easy. In fact, you can do it at the time of purchase itself. All that you have to do is fill in the necessary details of the nominee in the relevant section of the health insurance application form and submit the same to the service provider.
However, since the assignment of a nominee is not mandatory, many individuals skip assigning one at the time of purchase. In that case, you don’t have to worry; you can still assign a health insurance nominee. To do so, you would have to obtain a nomination form from your insurance service provider, fill it up, and submit the same.
Wondering what benefits the nominee in a health insurance policy stands to gain? Here’s a brief overview.
A health insurance plan compensates the policyholder for the expenses incurred for treatment of a disease. Now, if the policyholder visits a network hospital, he may be eligible for cashless claim settlement, where the insurer would pay all the bills directly to the hospital. However, in cases where the policyholder undergoes treatment at a non-network hospital, they might have to pay the costs upfront from their own pocket and then file a claim for reimbursement with the insurer.
In the second case, if the policyholder dies while undergoing treatment, the financial burden of paying all the hospital bills would fall on their family members. Now, if the policyholder has assigned a health insurance nominee, the nominee individual can simply submit the bills with the insurance service provider and claim reimbursement for all the expenses.
Here are some things that you should keep in mind when assigning a nominee for a health insurance plan.
Choosing the right individual to be the nominee for your health insurance plan is critical. Since this individual would be the person to receive all the benefits under the plan after your demise, make sure to assign someone who is the closest to you such as your spouse or your children.
Although you can assign any individual, it is always advisable to assign your legal heirs or your family members as a nominee to prevent unnecessary complications and legal troubles in the future.
When you’re assigning a nominee for your health insurance plan, always make sure to provide full and complete details of the individual. Provide their full name, address, date of birth, and the kind of relationship that you share with them. If the information is found to be incorrect later, the insurance service provider may choose to reject the claim.
If you ever wish to change the nominee for any reason, you have the power to do so at any point in time. Simply fill a fresh nomination form and submit the same with your insurance service provider as soon as possible.
Now that you know the importance of assigning a nominee in health insurance, make sure that you do it as soon as possible, if you haven't already. This will make it easier for your loved ones to claim the benefits under the health insurance plan after your demise.
No. Although it is advisable to add a nominee at the time of purchase itself, you can choose to do it at a later point in time as well.
Yes. You can change the nominee at any point in time.
Yes. You are free to add any individuals as a nominee to your health insurance plan. However, adding a family member is usually advisable to prevent complications.
If you don’t assign a nominee for your health insurance plan, claiming the benefits of the plan would take longer and can be done only by your legal heirs after submitting all the necessary documents.
Yes. You can add multiple nominees for your health insurance plan and specify the percentage of benefits that each nominee is entitled to.