Nomination vs Will: Why You Need Both
Nomination is not inheritance. Here's why this confusion costs families lakhs.
Nomination = Convenience
Nominee is a caretaker, not owner. They receive assets to distribute to legal heirs.
Bank/insurance pays nominee quickly. But nominee must legally distribute to heirs.
Will = Legal Intent
Will specifies who actually inherits what. It's your legal declaration.
Without will, assets go by succession laws — may not match your wishes.
Scenarios That Go Wrong
Single child nominated, multiple children exist: Nominee gets money. Siblings have equal legal claim. Lawsuit.
Nominee deceased, policy never updated: Insurance goes through lengthy legal process.
How to Prevent Problems
- Make a will — specifies legal intent
- Align nomination with will
- Review every 3-5 years
- Communicate with family
Nomination is operational convenience. It does not replace a will.