Nominee In Health Insurance

Nominee In Health Insurance: An Introduction

If you are here, you likely understand the importance of investing in a 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 such a scenario, a nominee in health insurance will receive the financial benefits.

But wait a minute!

'Can we 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 for their 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 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. However, in a health insurance plan, for 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 against legal complications and protect your loved ones. Here are numerous reasons to inform your health insurer about the nominee of your health insurance plan:

• Hassle-free Claim Settlement

  Appointing a nominee for your health insurance helps ensure a smooth claim settlement process in the event of the policyholder’s unfortunate demise. Having a nominee ensures that you do not face any legal complications, as it ensures the health insurance benefits are passed on to your legal nominee.

• Safeguard Your Family

  Losing a family member is emotionally and financially difficult. Appointing a nominee in health insurance ensures your family members do not suffer financially due to huge hospital bills. By adding a nominee, you ensure the health insurance benefits are transferred, securing the claim amount for your family.

• Avoid Disputes Within Family

  By opting for a nominee in health insurance, you ensure that the benefits of your health insurance plan stay with the person you nominated, avoiding any conflicts within the family regarding claims.

• Share Benefits Equally

  If you have selected multiple nominees in your health insurance plan, the health insurance claim will be shared among them.

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. If you opt for multiple nominees, make sure to specify the percentage of benefits that will be shared among them.

You can also add a minor nominee (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 policyholder's death.

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, such as:

• 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 old.

Claim Process for a Nominee in Health Insurance

If a nominee wants to claim health insurance on behalf of the policyholder, they need to follow the steps mentioned below. These steps apply to a reimbursement claim:

1. The nominee needs to inform the health insurance company of the policyholder’s death. A succession certificate, along with a copy of the filed FIR and postmortem report, should be submitted in case of an accidental death.

2. The nominee must send important documents to the health insurance company, such as hospital bills, health reports, the policyholder's death certificate, and relationship proof, etc., within 30 days.

3. The health insurance provider will verify all documents and details provided by the nominee and inform if any additional documents are required.

4. Once all documents are verified, the claim amount will be transferred to the nominee.

The Final Verdict

It is common to opt for a nominee in life insurance. However, many are unaware that you can also 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 for a nominee in cashless hospitalization. However, 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.