Have good credit score, need quick money? Opt for unsecured loan

Since the interest rate is high and the loan tenure short, evaluate your repayment capacity carefully.

The Reserve Bank of India (RBI) recently asked Indian banks to be vigilant about their retail portfolios, particularly the rapidly growing unsecured loans-such as personal loans and credit card loans-provide quick access to money when it is urgently needed, they also carry risks for borrowers.

Borrowers who can’t offer collateral have to take recourse to an unsecured loan.”They are a good financial option for people who don’t want to offer collateral. If you are in need of urgent cash loan without documents, unsecured loan could be your go-to-option. You can also apply for a personal loan to fund a major purchase or an event, home improvement, or to pay down higher-interest debt.

Quick disbursal

Unsecured loans are disbursed faster than secured loans.”Bring pre-approved, loan against credit cards are disbursed on the very day of application. Personal loans usually get disbursed between two and seven days. Many lenders also offer pre-approved personal loans to their select customers based on their credit profile. Such pre-approved personal loans usually have instant or same-day disbursal.

Credit score taken into account

A salaried individual having a good credit score can get an unsecured loan easily.”Lenders consider the applicant’s repayments capacity. They usually prefer those applicants whose equated monthly installments (EMI) obligation, including that of the proposed personal loan, is within 50-55 percent of the monthly income. Those exceeding this limit usually have a lower chance of approval. Ideally, all your EMIs put together should not exceed 40 percent of your home income.

High-cost loans

Banks perceive these loans as risky because they are not backed by any collateral (in case the borrower defaults). Hence, they charge high rates of interest on unsecured loans. Leading lenders charge up to 24 % on personal loan.”Unsecured loans are usually offered at much higher interest rates than secured loans to mitigate the lender’s risk. This, combined with the shorter tenure of 12-60 months, makes the EMIs for these loans high.

Evaluate repayment capacity

Borrowers should be careful when availing of these high-cost loans. “Borrowers who may not qualify for a secured loan but have a robust repayment plan in place may consider unsecured loans instead. But, in doing so, they must keep the high interest rate and the penalty factor in mind. They should make sure they have a strong repayment plan, given the loan’s short tenure and the prepayments charges.

Prepayment fee tend to be high in the case of unsecured loans. Those who don’t have a stable income should avoid these loans. Failure to pay EMIs on time will attract penalties and impact your credit score. ”Decline in credit score will make it difficult to avail another loan in the future”.

Scout for a good deal

If you have no option but to go for an unsecured loan, then do scout around for a good deal.”Compare interest rates. Also check the processing fee, prepayments charge, and late payment fee. And read the fine print of the loan contract to understand all the details,”

Choose a tenure that is easy on your pocket and doesn’t disturb your cash flow cycle.

Look for alternatives

Try to raise money from some other sources before opting for an unsecured loan. If you hold fixed deposits, you can take a loan against them at a lower cost. Gold loans and loans against securities also tend to be disbursed fast.

A top-up loan on your home loan may take a bit longer. Do check the loan –to-value ratio and interest rate before going for these options.”Gold loan, loan against property, home improvement loans, and loans against fixed deposits are alternatives you can go for to raise money at short notice,”

PERSONAL LOANS ARE RELATIVELY EXPENSIVE

LENDER	INTEREST RATE (% per annum)
HFDC Bank	10.50 to 24
ICICI Bank	10.75 to 19
Kotak Mahinder Bank	10.99   onwards
IndusInd Bank	10.49 onwards
Axis Bank	10.49 onwards

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 Checklist for buying a property via auction

Bank auctions offer a chance to buy prime property at a lower price

BUYING A PIECE of property in a bank auction can be great opportunity, but it is essential to conduct due diligence. Physical inspection of the property, checking ownership ad title details, liabilities and dues, auction rules and guidelines, as well as financing options are all critical steps to take before buying any property in a bank auction

You must start by indentifying the banks that conduct property auctions. Some of the major banks that conduct in India include State Bank Of India, Bank of Baroda, Punjab National Bank and Central Bank. Once you have indentified the bank, check its website for details about upcoming auctions. Most banks have a separate section on their website dedicated to auctions property.

There are several online platforms such as BankAuctions.in, eAuctionsIndia.com, etc, which offer information about bank auction properties in India. These platforms list property from various banks and provide detailed information about the property, including their location, reserve price, auction property in leading newspapers in the classifieds section.

If you are unable to find information about auction property on the bank’s website or other platforms. You can also contact the bank directly and inquire about the upcoming auctions.

“Buyers can purchase as the property at a lower price than its markets value. Auctions provide transparency in the purchasing process, as all interested buyers can see the bids being made and the final sale price.”

Buying a piece of property in a bank auction can be a good way to purchase real estate at a lower price, but it is important to be cautions and conduct through due diligence a before making a bid.

Here are five things you must check before buying a property in a bank auctions:

Title and ownership: Check the property’s ownership and title documents to ensure that the seller has the legal right to sell the property and that there are no outstanding disputes or encumbrances.

Physical inspection: Inspect the property in person to ensure that is in good condition and does not have any structural or other issues that could be costly to repair.

Liabilities and dues: Check whether the property has any outstanding dues or liabilities, such as property taxes, utility bills, or pending loans. You do not want to be surprised with additional expenses after purchasing the property.

Rules and guidelines: Familiarize yourself with the auction rules and guidelines, including the bidding process, payment terms, and other relevant details. This will help you avoid any confusion or misunderstanding during the auction process.

Financing: Determine the financing options available to you before the auction. If you plan to take a loan, make sure that you have the necessary documentation and pre-approval from the bank. Knowing your financing options beforehand will help you determine your bidding limit and avoid overbidding.

Lastly, it is essential to conduct through due diligence before bidding on any auction property. Make sure to visit the property, check its legal status, and assess its market value making any decision.

DUE DILIGENCE

Check the property’s ownership and title documents to ensure that the seller has the legal right to sell the property.

Make sure there are no outstanding dues or liabilities such as property taxes, utility bills or pending loans.

Find out the auction rules and guidelines, including the bidding process, payment terms, and other relevant details.

 

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Motor Insurance

 Pay lower premium if you drive less

Pay-as-you-drive policy’s premium is based on your driving habits

IF YOU DRIVE your car less frequently, opt for a pay-as-you-drive (PAYD) motor insurance policy as the premiums are based on the actual usage of the vehicle. The PAYD policies also offer increased flexibility and customization. The premium are determined by several factors such as your driving habits, the pricing structure of the insurers, and the coverage type you select besides the actual kilometers driven.

Probus Insurance Broker, Says as premiums are based on the actual distance covered, a PAYD policy can provide an excellent alternative for those who less frequently.” It can also incentivize safe driving practices as the cost is directly linked to driving behavior.”

Lower premium

In case of PAYD, similar to all motor insurance policies, the premium of the mandatory third-party insurance is fixed by the ministry of road transport and highways. For the own damage part, the premium is based on the kilometers plans. Several insurers have launched at PAYD policies. For instance, in HDFC Ergot’s Pay As you Drive-kilometer Benefits add-on cover, anyone driving less than 10,000 km in a year can benefit up to 25% of their own damage premium, subject to the odometer reading. In kotak General Insurance’s Kotak Meter, a policyholder can switch off own damage cover when not driving and save on the premium.

PAYD policy can be good option for those who want a more flexible and cost- effective insurance solution that aligns with their driving habits.”Drivers can choose the coverage and options that best suit their driving habits and budget, rather than being limited to a one-size-fits-all policy.

Types of PAYD policies

Insurers offer various type of PAYD policies such as distance-based, behavior-based and even hybrid ones. In the distance –based, the premium is based on the distance traveled by the vehicle and is suitable for those who use their vehicles infrequently or for shorts distances. The behavior-based policies use telematics devices to track driving behavior, such as speed, acceleration, and braking and the premium is calculated based on how safety the driver operates the vehicle.

In a hybrid policy, the premium is calculated based on the both the distance traveled and the driving behavior

Factors to consider

Before opting for a PAYD policy, review the coverage options offered by different insurers and compare them to a traditional comprehensive motor policy. Some PAYD policies may offer limited coverage or exclude certain types of damages or incidents.

Goyal suggest looking for policies with customizable option that fit one’s specific driving habits and needs. “Consider the premium rates, deductibles, and coverage. Check out different usage-based policies offered by insurers to compare the features and benefits they offer.

Some PAYD policies require the installation of telematics device, which track driving behavior and mileage. Telematics devices may collect personal data, such as driving behavior and location, which raise privacy concerns, “It’s important to review the insurer’s privacy policy and understand how personal data is collected, used, and protected. One must understand the discounts and rewards offered by insurers for safe driving behavior or low mileage and know how they can be redeemed.

BEHIND THE WHEEL

Insurers are offering various types of pay-as-you-drive (PAYD) policies such as distance-based, behavior –based and even hybrid ones.

PAYD policies may offer limited coverage or exclude certain types of damages, so go through the fine print also.

 

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 In new tax regime, continue with PPF, SCCS, term and health plan

Stop fresh investments in ELSS and Ulip; decision to exit after lockin should depend on performance

A salaried individual can choose between the old and the new tax regime every financial year. The new tax regime levies lower tax rates but doesn’t allow tax deductions. Those who have chosen to go for this default regime need to decide whether to continue with the tax-savings instruments they were investing in earlier.

The basic premise for choosing any product should be its risk-reward and whether it help you meet your financial goals. Tax savings should be a by-product.Public Provident Fund (PPF)

This exempt-exempt- exempt (EEE) scheme, which currently offers 7.1 percent return, remains attractive for building a tax-free corpus, “Although the first E will go away under the new tax regime, the other two Es remain. The interest earned and the maturity amount will continue to be tax-free.”

People who were putting large sums into the Voluntary Provident Fund (VPF) but had to stop due to the imposition of the 25 lakh cap on contributions earning tax-free interest will find the PPF especially useful. Khosla recommends continuing to invest in PPF.

Equity Linked Savings Scheme

ELSS are run like flexi-cap schemes, the only different being that they have a three-year lock in. Since an investor opting for the new tax regime won’t avail of the Section 80C deduction, further investments in these funds should be stopped (unless you feel the lock-in helps you avoid the tendency to exit early).

As for the existing money, “An investor can consider redemption after the three-year lock-in period ends. The money can be invested open-end equity schemes like large-cap mind-ca-cap and flexible-cap funds, depending on the investor’s risk profile.”

If the scheme is doing well, leave your money in the fund until you need it.

Unit Linked Insurance Plans

They invest in a mix of equity and debt. Their returns are market-linked. Here, again, fresh investments should be stopped to avoid the five-year lock-in (unless you want the discipline imposed by the lock-in).

“If you have paid the premium for five years and your purpose for investing in the Ulip was only tax savings, then you may stop investing in it and cash out the fund value, But if the Ulip’s funds are performing well, you may continue with your investments.

Senior Citizens Savings Scheme

Generally, senior citizens invest in SCSS not for the tax deduction but for the higher interest rate: 8.2 percent currently, which is taxable.

Association of Registered Investment Advisors (ARIA), says, “Senior citizens should continue to invest in SCSS as the interest paid on it is usually higher than bank deposits. With the investments limit being increased from 15 lakh to 30 lakh per permanent account number (PAN), senior citizens may increase their investments in it after considering their income-tax slab.”

Sukanya Samriddhi Yojana

It offers an 8 percent tax-free return. Patel says, “Continue investing in it for the benefits of the girl child”

Term and medical insurance

Term insurance is essential for protecting the family’s financial future against the risk of the breadwinner’s early demise.”Continue with your term plan so long as the need for the cover exists, irrespective of the tax regime.”

Medical insurance is another must have. “With medical expenses being already high and rising rapidly, health insurance should be continued with.”

SHOULD YOU KEEP INVESTING IN THESE TAX-SAVERS?

PRODUCT	HOW TO DECIDE
Traditional insurance plans for HINs	Check internal rate of return (IRR). If it is the range of 7% or above (tax-free on maturity), continue
National Pension System	Section 80C benefits will stop under new regime, Contributions under Section 80CCD (2)(NPS offered by employer) will continue to enjoy tax benefits, so don’t stop. Use all Citizens Model if you are okay with lock-in goals is to build retirement corpus.
5-year tax savings fixed deposits (FDs)	Continue with older FDs until maturity. Don’t make fresh investments as normal FDs offer greater flexibility
National Savings Certificate (NSC)	7.7 percent interest rate (taxable) is reasonably attractive. Invest if you are okay with five-year lock-in and periodic rate version.

 

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Use cost-effective and accessible group term plan to boost coverage

 Use cost-effective and accessible group term plan to boost coverage

Bajaj Allianz Insurance Company has recently launched a group term cover for customers of the post office and India Post Payments Bank. This cover is available in two variants, priced at 2,584 and 5,168 (inclusive of GST), for a sum assured of 5 lakh and 10 lakh, respectively.

How does it work?

Group term insurance is offored an affinity group-employees of a company, customers of a bank, members of a club or an association, etc.”One condition is that the group should not have been formed specifically for the purpose of obtaining insurance.

The sum insured and risk profile (the latter depending on, say, occupation) determine the premiums of these policies. A larger-sized group is likely to be charged a lower premium person. Pricing also depends on whether the cover is compulsory or optional for group members. The cost is usually lower in the former. “The premium can vary between 150 and 500 per 1 lakh of sum assured.

No individual and writing

Individuals members benefits from being part of group.” The group term cover we have launched for members of the post office and India Post Payments Bank offers age independent pricing: all buyers pay the same premium irrespective of age.

Individuals don’t have to undergo medical underwriting.” This means everyone gets covered automatically. These plans are a boon for people with pre-existing disease who are finding it difficult to obtain an individual’s cover.

The paperwork is simpler. “When you go to purchase an individual’s cover, you will typically be asked for your salary slip, three-four years of income tax returns, etc. None of those financial documents have to be submitted here. Group term cover is also far more cost-effective than an individual’s cover.

Inadequate cover

A group term cover is renewable every year.” If a company gets into financial trouble, it may decide not a renew the cover. The premium can change year on year based on claims experience. “In an individual’s cover, the premium remains fixed throughout policy tenure.

Group policies tend to have limited tenures.”The cover from your employer terminates at retirement. Most other group covers also don’t extend beyond 65. The sum insured is often inadequate.” The sum insured depends on the group’s decision and doesn’t usually exceed 5-15 lakh.

Most high-income customers nowadays require a sum insured of Rs 1 crore and above. Group policies also can’t be customized using riders. Finally, a member less this cover on existing the affinity group.

Who should opt for it?

Many 20-3 year olds are reluctant to buy a pure protection plan.”They can buy a group plan which will offer them a cover of Rs 5-10 lakh. Once their responsibilities increase and their affordability improves, they can buy an individual’s cover.

Mehta is of the view that anyone who is offered a group term cover should opt for it. “The premium is low, no medical test is required, and on-boarding is simple. Kashiwa says a group cover should be avoided only if it is expensive.

Supplement with individual cover

If you have the option to be part of two group cover, go for the less expensive one.”Compare the premium as a percentage of sum insured of each of the offerings.

A group cover must be supplement with an individual cover. Growing lifespans are forcing people to work after retirement, with their families still dependent on their earnings.”Such people will need an individual cover that can provide protection till the age of 75or 85.

Many people may quit large organization and move to a start-up, which may not offer a group term cover. They too, will feel the need for an individual cover. Buy the individual cover early as the premium is lower at a younger age.

YOU NEED BOTH TYPES OF COVERS

	Individuals	Group
Premium	Premium is determined based on age, health condition, and other factors of the individual	Premium is calculated based on the average risk profile of the group
Underwriting	Understanding is done for each individual policyholder.	Underwriting is done for the entire group
Sum Assured	Higher sum assured can generally be availed of	Sum assured tends to be lower.
Renewability	Generally renewable up to certain age	Renewability depends on desire of the entity administering the group policy
Portability	Can be transferred to a different insurers	Cannot be transferred as it is provided by the employer or a group
Customization	Can be customized based on the specific needs of the individual	Limited customization possible as the policy is designed for the entire group

  

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Travels policy coverage should align with potential medical bills abroad

 Travels policy coverage should align with potential medical bills abroad

Disclose all pre-existing ailments to ensure smooth processing of claims.

Many are eager to jet off with their families to exotic foreign destinations this summer. However, amid selecting the right vacation spot, flights and hotels, one should not overlook the importance of purchasing a comprehensive travel insurance policy.

Such insurance can provide coverage for a range of potential emergencies and mishaps, including medical expenses, trip cancellation, and loss of baggage.

Match policy to travel goals

When choosing a travel insurance policy, give primary consideration to the purpose of your trip. For example, if you are traveling for business, a basic policy that covers trip or flight cancellation, loss of baggage (also passport and mobile devices), medical expenses and personal accident may suffice.

“If you are travelling for personal recreation purposes, then in addition you can also opt for an add-on like adventure sports cover, which provides coverage for accidents, death, or permanent total disability arising out of partaking in such activities. 

Students travelling abroad for studies should opt for plans specifically designed for them.” They should buy policies designed to cover the entire study period, and which provide protection against specific risks like sponsor protection and study interruption.”

Buy adequate sum insured for treatment

Depending on the country you are travelling to, purchase adequate coverage for medical treatment. This cost tends to be very high in country like the United States. “This most basic and important feature of a base travel insurance policy is to provide you with medical cover. It should cover hospitalization costs, accidents, ambulance charges, medicines and day care procedures. The cost of emergency should also be covered.

Supplement basic cover with add-ons

Personal accident cover, flight cancellation or delay cover, and baggage and personal belongings cover, are some of the features that should be included in the basic policy.

Additional features can be added to your travels insurance policy by paying a slightly higher premium.

Adventure sports: Most base travel insurance policies do not cover adventure sports. “if you plan to indulge in such activates, find a plan that covers these activities and the medical costs that can arise from them as part of the base policy or rider.

Visa rejection :  Susheel Tejuja, ,principal officer, founder and managing director informs that certain insurers now offer an optional add-on  benefits of refunding the visa fee in case your application gets rejected.

Fraudulent charges: Sometimes, a traveler’s card can get stolen. The thief may run up a massive bill on it.”In such an event, this add-on-reimburses the unauthorized charges

Emergency assistance cover (which covers the cost of legal assistance, bail bond, emergency, and evacuation), emergency trip extension cover (for situations such as medical issues, riots, political upheavals, etc) and burglary cover (for your home while you are away) are other add-ons you may consider buying.

Understand the caveats

All these covers may be included in some policies but not in others.”A cover that is part of the base cover in one policy may be available as an add-on in another. Therefore, read the policy document will also make you familiar with the conditions that apply to making claim payouts.

Make sure you select an insurer with a reputation for an easy and straightforward claims process. “Look for an insurer that has a dedicated claims team and also has international tie-ups that can assist you in case of an emergency.

According to Sharma, it’s crucial to disclose any pre-existing health conditions prior to purchasing a policy to ensure a seamless claims process. Review the policy details and understand all the exclusions or limitations. Mishra cautions that some policies may not offer coverage for pre-existing conditions, adventure sports, or certain destinations.

Finally, when purchasing a travel insurance policy , take the time to compare different policies and select  one that meets your specific needs. This due diligence will ensure peace of mind during your travels.

 

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Need quick credit for short term? Consider loan on fixed deposit

 Need quick credit for short term? Consider loan on fixed deposit

One form of loan that has caught the eye of retails borrowers in recent times is loan against fixed deposits (FDs). According to data from the Reserve Bank of India’s (RBI’s) April 2023, bulletin, this form of loan witnessed an unprecedented surge of 43 percent during the 2022-23 financial years, making it one of the fastest-growing retail loan products in the country. The outstanding portfolio of this form of loan had soared to Rs 1.113 trillion by February 2023.

How does it work?

If you have an FD and want a loan, the bank will lien-mark the FD and gives you the money. Banks charge an interest rate that is 100-200 basis points higher than the interest paid by the FD.

Low –cost, accessible credit

The interest cost of this loan is low. “If you have an FD that pays an interest rate of 6 or 6.5 percent, you could get this loan for 7.5-8 percent.

FD rates had hit historic lows post covid-19 and remained so till the RBI began to hike the reporate from the May 2022. “By using FDs booked during the low interest rate regime as collateral, the borrower can get this loan at a low cost.

This loan is easy to get. Usually, when a customer applies for an unsecured (or even a secured) loan, the bank checks his income, repayment capability, and credit score. “In case of a loan against FD, the lender waives these checks because it gets highly liquid collateral- the FD.

Most banks offer loans against FD in the form of an overdraft (OD) facility. A credit limit is sanctioned (which depends on the FD amount). The borrower can withdraw up to the sanctioned amount and repay it at his convinces. Interest is incurred only on the amount drawn, and for the period of utilization. “This makes it an excellent tool for mitigating frequent liquidity and cash flow mismatches.

This loan allows the borrower to access a large portion of the money in his FD without closing it prematurely. If you break the FD, you are paid a lower interest rate, corresponding to the period for which the FD was held, you also have to incur a premature withdrawal penalty.

The loan to value (LTV) ratio (the value of loan given versus value of the collateral) is high at 85-95 percent. In the case of a gold loan, the LTV ratio doesn’t usually exceed 75 percent. In the case of a gold loan, the lender also does its own valuation of the gold you hand over. In case of a loan against shares, the LTV ratio doesn’t go beyond 50-70 percent. And a loan against property takes considerable time to sanction because the lender evaluates the legal title and then does the valuation of the property.

Suitable for limited period only

This loan can only be availed for the short term. “The loan must be repaid before the FD matures. That puts a limit on its tenure.

Once an FD is used as collateral, it can’t be closed unless the borrowers pay off the loan.” The money lying in the FD can’t be used in an emergency. The loan can only be taken from the bank where you have the FD, so you can’t shop around.

Who should go for it?

People who have a poor credit score find it difficult to get an unsecured loan and have to turn to a secured loan. If you need money for short term, and quickly, a loan against FD is advisable.” But if your require the money for a longer tenure, consider breaking the FD and using your own funds instead of paying interest on this loan. Factor in the interest rate at which you booked at a high interest rate, this loan will not be cheap.

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Appoint a nominee, and then write a will

Appoint a nominee, and then write a will

Specify the nominee as the legal heir in the will to avoid any disputes

The RESERVE BANK of India (RBI) will soon launch a centralized portal that will help bank depositors or their beneficiaries to search and get back the unclaimed deposits after due verification. About Rs 35,000 crore of unclaimed amounts from 10.24 crore accounts (as on February 2023) were transferred by public sector banks to the central bank. Unclaimed deposits pile up with banks to the central bank. Unclaimed deposits pile up with banks, insurance companies, assets management companies, etc, as individuals often do not appoint a nominee to handle their account after their death or the legal heirs are not aware of the various investments done.

To manage your finance and ensure that your family gets back your hard-earned money, it is crucial to record nomination, update it whenever required and write a will. A nominee is not considered as a legal heir and is only treated as a caretaker of the assets.  Nominations are made to ensure that the deceased’s assets are protected until the legal heirs take the right steps to take the right steps to take over them.

Nominee to legal heir

A nominee is a trustee who would be the caretaker of the financial assets and will transfer the money to the legal heir of the deceased person. A legal heir is a person who is entitled to succeed to the property of a deceased person under a will or as per the succession laws.

Even in the presence of a nomination, an individual should write a will as it is the supreme document that specifies the exact intentions of the deceased. “Assets distribution should be specified in the will to ensure that the legal heirs get their inheritance. Legally, an individual can appoint anyone as a nominee. However, it is advisable to nominate the nominee as a legal heir while writing a will to avoid any disputes over the inheritance.

It is important to mention the nominee as a legal heir, while marking the nomination. But, this is not sufficient to ensure that the same person will get a share of the assets by simply being a nominee.

For example, a person may have appointed his wife as a nominee for various investments making his wife one of his legal heirs as well as a nominee. With his death, the person leaves behind family members (and legal heirs) such as his mother, two sons, one daughter and wife. In fact, the deceased person had assumed that his wife, being the nominee, will get everything smoothly. But, according to the low, his other legal heirs, i.e, his mother and three children also have equal rights over his assets. In such a case everything will have to be equally distributed among his five legal heirs since he had no will.

Appointing a nominee

While individuals can appoint spouse, parents and even a distant relative and friend as a nominee, they must note that for every financial product, the eligibility of nomination differs. For Example , in the case of Employee’s Provident Fund the nominee has to be a family member as the money will go directly to the nominee is a minor, then the individuals will have to give details of the guardian.

In case of insurance policies, the rules of beneficial nominee apply. Policyholders can put a beneficial nominee as spouse, children or even parents and in case of death of the policyholder the proceeds will go directly to the beneficial nominee is not mentioned, then the nominee will be considered as just a custodian and the proceeds will go to the legal heir. In most investments like bank deposits for National Pension System, an individual can opt for multiple nominees and define the share to be distributed to each of them.

“It is important to update the nominee as and when the relationship dynamics and financial obligations evolve. For example, if one gets divorced or remarried and no longer wants to keep their ex-spouse as the nominee, there is a need for an update in the will.

WHO GETS YOUR MONEY?

A nominee is a trustee who would be the caretaker of the financial asset and will transfer the money to the legal heir of the deceased person.

A legal heir is a person who is entitled to succeed to the property of a deceased person under a will or as per the succession laws.

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