What happens if your nominee dies before you?

When you invest in mutual funds, buy insurance, or open a bank account, you are asked to pick a nominee who will receive your assets if you pass away.

But what if your nominee dies before you?

Your investments don't become invalid, but you should appoint a new nominee to make things easier for your legal heirs.

If you don't update your nominee, your legal heirs might have to go through extra paperwork and legal formalities to claim your assets.

The Securities and Exchange Board of India (SEBI) is introducing a new framework called Quick Transmission Processing (QTP) to make the transfer of small-value claims easier.

You can update your nominee online or offline, and it's a good idea to do it as soon as possible.

Remember, updating your nominee for one financial product doesn't update it for all your investments, so you need to do it separately for each one.