Like thousands of people, do you think that the Nominee will get the proceeds of your Insurance Claim after your death?
Then you are mistaken.
The nominee is just a custodian of the claim amount.
He can’t spend the amount.
He will have to give the proceeds to the legal heir as per the succession law.
Now you understand, when you take any loan, why they asked you to sign an assignment form for your insurance policies.
This assignment form means the proceeds of the claim will first go to the bank to settle the loan, and balance money (if any) will be given to a legal heir.
But it is difficult to go to all the insurance companies and get the assignee endorsement.
Apart from Insurance Claim, you would have given Nominee name for PF, Mutual Funds, Shares, FD, etc.,
If you want to ensure that, the proceeds of all your insurance policies, savings, investments should go to person X, Y, or Z you should execute a will.
It is the ultimate source of truth and supersedes the succession law.
It is also the only way to ensure that your hard-earned wealth goes into the right hands.
If you do it right, it will last forever. Your Wealth!