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Accidents can sometimes result in the tragic loss of an entire family, including the life insurance policyholder, the nominee (typically the spouse), and even the children. In such emotionally and legally complex scenarios, how are insurance payouts made? Life insurance and legal experts explain the process and precautions policyholders can take.
When both policyholder and nominee pass away
If the policyholder and the nominee (spouse) die in the same accident, the insurance payout does not lapse. “In such cases, the benefit is directed to the legal heirs of the life assured,” says Sanjay Arora, chief of operations, Tata AIA Life Insurance.
Succession
