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Can you nominate a minor for insurance or mutual funds? Here's what you need to know
Mint 1 hr ago·8 Sept 2026, 2:14 am
In India, you must nominate a person to receive the benefits of your insurance policy or mutual fund investments if you pass away. The nominee acts as a legal representative to claim these assets. Generally, the nominee must be an adult, but regulations now allow you to nominate a minor. This means you can appoint a child as the nominee, provided you also appoint a guardian to manage the assets on their behalf until they reach the age of majority.
This change is significant for investors who want to ensure their wealth is transferred directly to their children. It simplifies the process and ensures the assets are preserved for the next generation without the need for complex legal procedures. For retail investors, it offers a straightforward way to secure their family's financial future and avoid potential disputes among relatives regarding asset distribution.
What to watch next: Investors should review their existing nomination forms and update them if necessary to reflect the new rules. Ensure you clearly specify the guardian for any minor nominees to avoid administrative hurdles. Staying informed about these regulatory updates helps in maintaining a clear and legally sound investment portfolio.
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