More than 1 nominee for HDFC Term Life Insurance

04 Aug, 2021 | by Ravi Kumar

Hi,

I am planning to take a term insurance from HDFC Term Life. I was interested in having more than 1 nominee, my agent tells me that it is possible but the claim will be split among the nominees in the share put by me. So, if I put my wife, father and brother as nominee, I have to also write their respective shares in the term insurance form. Whereas, my preference is to say give 100% to any one nominee, however, if that nominee is not alive at the time of the claim then give 100% to another nominee as mentioned by me. Basically, rather than splitting the claim amount I want to give preference order for multiple nominees. Is this possible?

Also, if I make my wife the nominee, the full claim amount will be transferred to her bank account at the time of the claim, irrespective if it is under MWP or not. In that case, how does MWP differ from non-MWP?

Regards

Ravi K

Term Life Insurance

1 Answer

Post

05 Aug, 2021

Manoj Kumar Pandey

Your agent is right. You can hv multiple nominee but you can not give a preference order there. If you do not allocate share they would be getting equal share. If you take policy under MWP Act then only your wife & kids ( as a group) would be entitled to that claim amount. No other relative would hv any claim over it - not even your mother who is otherwise a class 1 legal hier & has equal right in your estate along with your wife & kids.

Hope this helps

2 Comments

05 Aug, 2021

Ravi Kumar

Thank you for reply. Just to confirm, so MWP has nothing to do with external loans such as bank loans. Because MWP or not, the claim amount will anyway hit my wife's account (assuming she is the sole nominee in both cases). My concern is, suppose I have a home loan or a personal loan when I pass away, is the bank (from whom I had taken loan) entitled to take the claim amount?

06 Aug, 2021

Aayush Dubey

Hi Ravi, Hope you are well!

To answer your question, banks or creditors will always have the first right to your claim amount. This is as per the law!

I suggest you go through this article on MWP Act written by our founder. This article will answer all your questions. If you still have any follow-up questions, do post them here.

Article Link: https://www.beshak.org/insurance/term-life-insurance/articles/mwp-act-can-ensure-smooth-term-insurance-claim-settlement

Hope this helps!

Thanks!

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More than 1 nominee for HDFC Term Life Insurance

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