Nomination is the process of formally designating a specific person — called a nominee — to receive the proceeds of your investment, bank account, insurance policy, or other financial holding automatically, in the event of your death. It's a simple but often overlooked step that can make a significant difference in how smoothly your family accesses your assets during an already difficult time.
Without a valid nomination in place, your family or legal heirs may need to go through a more complex and time-consuming legal process to claim your assets after your death, even if they're the rightful and undisputed heirs. It's a good practice to add or update nominee details across every financial account you hold — bank accounts, mutual funds, insurance policies, and EPF or PPF accounts — and to review these periodically, especially after major life events like marriage or having children.