A nominee can be anyone you want. A spouse, children, relatives, friends, it is your choice who will be the beneficiary of your insurance policy. You can nominate more than one beneficiary, which mean that the money is to be divided among those appointed as beneficiaries. Successive nominations will have the money paid to the first nominee, if not available, it will be passed to the second nominee and so forth. When you buy the policy, you will be provided with a nomination form to complete. In that form, you have to give all the details of the nominee. It is important that you complete this form as fully as you can. You will have to supply the name, surname age, address and the relation to you.
There are certain things you must know and consider when you choose a nominee. Choose a nominee as soon as you buy the policy. Try to nominate a beneficiary who is close family. If you nominate more than one person, it is best to specify how much each person must receive. Remember that you must name an appointee if the beneficiary is your child/children. You must give your child's date of birth, the name of the natural guardian, and the reason for your choice. Be careful when you appoint a child without adding any children born afterwards. Chances are that your parents were the nominees of your policy. Make sure that you change that after you get married. Make sure that you review the policy after a divorce. You do not want the wrong spouse to get the money.
There is a chance that the beneficiary can be sued for the money if there is a legal beneficiary. Any creditor (lender) has first rights on the policy. You can change your nominee at any time. You just need to complete a "Change of Nomination Form." You do not have to tell your previous nominee. Those nominees are not allowed to influence the change. If you as the policyholder have a will, your beneficiary will get the money from the policy. It is important that you tell your beneficiaries where you keep the policy documents. It will be very sad if you die, and the money does not go to the person; you want to benefit. Your beneficiary will only receive the money after you die. If the policy matures and you are still alive, the nomination is no longer valid.
It is very important that you make sure all forms are completed, and you share information with the people you need to as soon as you buy the policy. Remember that the purpose of having a nominee is that your loved ones are taken care of when you are no longer there to do so. It will be disastrous if you would die, and you did not appoint the beneficiary of your choice.