Who Gets The Insurance Claim If Policy Holder And Nominee Die At The Same Time?

Last Updated:September 15, 2025, 09:29 IST

If both the policyholder and nominee die, what happens to the insurance claim? A tricky situation, but the rules are clear. Find out what the law says.

If both the policyholder and nominee die, the insurance claim goes to the policyholder’s legal heirs. (News18)

When purchasing an insurance policy, it is essential to name a nominee. In the event of the policyholder’s death, the insurance payout is made to the nominated person. However, there are scenarios in which both the policyholder and the nominee pass away. This raises the question: who receives the insurance money in such cases?

Here’s How It Works

• If the nominee is alive after the policyholder’s death, the insurance claim amount will be paid to the nominee.
• If both the policyholder and the nominee have died, the claim amount will be paid to the legal heirs of the policyholder.
• If a will has been made, the beneficiary named in the will shall receive the money.
• If there is no will, the distribution will follow the rules laid out in the Indian Succession Act; typically among surviving spouse, children, parents, etc.
• If the nominee dies before the policyholder, in this case too, the policy amount will be given to the policyholder’s legal heirs.

Case Study 1

Rajesh held a life insurance policy and named his wife Sunita as the nominee. Rajesh sadly passed away. However, before the claim could be processed, Sunita also died.

In this situation, the insurance payout will go to Rajesh’s legal heirs, for example, his children, parents, etc. If Rajesh had made a will, the beneficiary named in it would receive the money.

Case Study 2

Seema purchased a life insurance policy and nominated her son Amit. Seema passed away, and Amit died in an accident before making the claim.

Since the nominee (Amit) is no longer alive, the insurance amount will be paid to Seema’s legal heirs. If she had a will, the beneficiary named would be entitled to the funds. Without a will, her husband, other children, or parents would inherit the amount according to succession laws.

Case Study 3

Manoj took out a policy and named his brother Sanjay as the nominee. After Manoj passed away, the insurer paid the claim amount to Sanjay.

If Sanjay later dies, the amount becomes part of Sanjay’s estate and will be passed on to his legal heirs.