Is beneficiary and nominee the same for insurance policies?

Answer 1

Beneficiary -
The person or party the owner of a life insurance policy names to receive the policy benefit.
nominee -
1. One who has been nominated to an office or for a candidacy.
2. A person or organization in whose name a security is registered though true ownership is held by another party.

Source(s):

http://www.policywala.com/

Sign in to vote!

Answer 2

Generally, the nominee is the beneficiary. In case of assignment of policy for loan, the beneficiary is the creditor. Also, in case of legal dispute, the beneficiary is as decided in a decree of court.

Sign in to vote!

Answer 3

No,

Nominee means a nominated person of the insured who may or may not have financial interest. Whereas, a beneficiary (like banks, financial institutions etc) is the one, who has financial interest over the insured / insured item.

Sign in to vote!

Answer 4

One of the High Courts has said that nominee is only a trustee of the funds received. He does not automatically become the owner. His duty is to disburse the proceeds among the legal heirs.

The beneficiaries are also the legal heirs of the person. Only one person named by the policy owner does not become the owner of the money. All the legal heirs can stake their claim.

Technically beneficiary and nominee is the same for insurance policies.

HMT

Sign in to vote!