Life insurance policy
m
(Querist) 04 July 2012
This query is : Resolved
Hello Sir
My sister, who is married, is planning to buy a life insurance policy in her name with a nominee from her parent's family i.e her sister (me). Both I and my sister are working. Can this cause any problem at the time of claim from legal point of view as my sister is married and has not nominated her spouse as the beneficiary of the claim amount. Does the spouse have a legal right on the claim amount inspite of not being a nominee. How will the situation change, if she chose my mother (who is dependent on her) as a nominee.
Thanking in advance
ajay sethi
(Expert) 04 July 2012
a nominee is only a trustee . merely because your sister has nominated you does not mean that her husband cannot subseqently claim the policy proceeds as a legal heir .
it is advisable for your siter besides making a nomination to make a will that on her demise sister or mother will get the policy proceeds
Devajyoti Barman
(Expert) 04 July 2012
Yes the trustee is mere custodian. The appointment of nominee does to take away the right of legal heirs to inherit the property.
m
(Querist) 08 July 2012
Thanks for the reply.
Can you please suggest a solution.
My purpose is to insure her life and in case of an event, ensure that the proceeds come to her parent's family. Can this be achieved if I buy an insurance policy with her as the life assured i.e I am the policyholder and will pay premiums on the policy and she will be the life assured with my mother as the nominee.
Can insurable interest be established between me and my sister.
Thanks
