Nominee In Health Insurance: An Introduction

If you are here, we are sure you know the importance of investing in the best health insurance policy. In a world of growing lifestyle-related ailments, sedentary lifestyles, and unhealthy eating habits, a good health insurance plan is your weapon against hefty medical bills.

However, what happens in case of the policyholder’s unfortunate demise due to health complications? In this case, a nominee in health insurance will receive the financial benefits.

But wait a minute!

‘We can add a nominee to health insurance?’
‘Is this feature available with health insurance?’

We know these are the questions running through your mind right now. Don’t worry, we are here to answer all your questions about a nominee in health insurance. This article is your guide to what a nominee in health insurance does, how you can nominate someone in your health insurance policy or group health insurance policy and more.

Who Is A Nominee?

The primary policyholder chooses a nominee in your health insurance policy. The nominated individual will receive health insurance benefits in case of the policyholder’s unfortunate demise.

In a normal scenario, when you make a health insurance claim for availing medical treatments, or hospitalization you will receive the claim amount. However, the nominee receives health benefits in the event of the policyholder’s death.

A nominee is mandatory when you purchase a life insurance plan. But in a health insurance plan, in the case of cashless hospitalization, the nominee will not receive any benefit. Hospitalization and medical treatments are directly settled between the insurer and the network hospital.

Importance Of A Nominee In Health Insurance

Having a nominee for your health insurance can safeguard you from legal complications, and protect your loved ones. There are numerous reasons to inform your health insurer about the nominee of your health insurance plan:

How Many Nominees Can You Add To Your Health Insurance?

As a policyholder, you can choose to have single or multiple nominees in your health insurance plan. In the event of opting for multiple nominees in your health plan, make sure to specify the percentage of benefits that will be shared among the chosen nominees.

You can also opt to add a minor nominee who is 18 years and below for your health insurance benefits. However, you need to appoint a guardian or trustee who will receive the health insurance benefits on behalf of the minor in the event of the death of the policyholder.

Who To Add As A Nominee In Health Insurance?

When choosing a nominee for your health insurance plan, there are no restrictions on who you can choose. You can opt for someone from your immediate family as your nominee like,

• Father
• Mother
• Spouse
• Relatives
• Friends
• Dependent Children (minors below 18 years)

However, you must mention a guardian who can legally handle the claim amount until the child turns 18 years of age.

How To Add A Nominee In Your Health Insurance?

Adding a nominee to your health insurance plan is a simple and hassle-free process. You can do it at the time of your health insurance policy purchase as well as mid-policy. Here are the steps you need to follow:

• Fill in the nomination form available online on the official website of your health insurance company.
• Provide nominee details demanded such as name, age, contact information, relationship with the policyholder, etc.
• In case of multiple nominees in your health insurance, specify the percentage of the claim amount to be shared among the nominees.
• Provide necessary documents such as a valid ID proof of the nominee.
• Once you fill out all the necessary details, submit the nominee form.

The Final Verdict

It is common to opt for a nominee in life insurance. However, many are not aware that you can opt for a nominee in health insurance. Nominees are an essential part of health insurance as they not only ensure that your health insurance claim goes into the right hands but also safeguard your family from the financial burden of expensive hospital bills.

There is no role of a nominee in a cashless hospitalization but in the event of the unfortunate demise of a policyholder in a non-network hospital, nominees can file for a health insurance claim on behalf of the policyholder. Reimbursement claims can be availed by nominees.