Successive nomination can help in insurance claim settlement

The option will come in handy in times of COVID-19

The COVID-19 pandemic poses a high life risk. In such a situation, it is possible to enrol three nominees in life insurance policies under the concept called successive or alternative nomination. Normally, the insured person gives the name of the nominee while enrolling for life insurance. When the insured person dies, his/her nominee receives the claim amount. However, they cannot use the claim amount unless they are a legal heir of the policyholder. In life insurance policies, the two common types of nomination are single nomination or joint/multiple nomination (in which the policyholder mentions how much of the claim money should go to each nominee). However, there is the third type of nomination called successive nomination or alternative nomination, which many are not aware of.