Nomination is one of the most Misunderstood terminology among investors.
A Nominee is a person;
- Who has the Right to receive the proceeds but not to enjoy as a beneficiary
- The Nominee on receipt of the money acts as a “Trustee” and shares the proceeds equally among the legal heirs.
- The nominee can be one of the beneficiary
- In case of LIC policies, if the nominee is a Beneficial Nominee (nominee happens to be blood relative ; Father/mother/spouse/ Son/Daughter), then the Nominee becomes the absolute owner of the money received.
In the Case of EPS / ELSS, the fund value on the date of approving the claim is paid to the nominee.
