Even though banks and investment firms have revamped financial products to meet the needs of millennials in the digital age, restrictions on their ability to name a living partner, whether of the same or opposite sex. , remain a gray area.
A nominee has the right to access the account holder’s bank accounts and is entitled to money deposited into savings accounts, deposits (both fixed and recurring) and bank records (even during the holder’s lifetime. Account). All banks allow the parents, spouse, children or siblings of the account holder to be applicants, but only a handful allow resident partners to be applicants.
Praveen Bhatt, Executive Vice President and Head of Retail Liabilities and Direct Banking Channel, Axis Bank said: âAxis Bank does not restrict any relationship to be eligible to be an agent in its individual liability accounts, that is – say current accounts, savings accounts, term deposits etc. Live-in-partner can be a candidate in such accounts.
However, this is more of an exception than the norm.
Banks insist on giving joint home loans to married couples or birth relatives. Resident partners do not hold much ground when applying for loans.
Besides parents, spouse and children, some insurance companies also allow their clients to choose cousins ââand siblings as candidates. However, resident partners cannot be named in life insurance policies.
Adhil Shetty, CEO of BankBazaar, an online marketplace for financial products and credit score checking, explained why this is so. âIn the event that a resident partner is appointed nominee, there is no way for the insurance company to confirm the relationship between the insurer and the nominee, so there is no way to confirm the relationship between the insurer and the nominee. ‘assign a beneficiary to the policy. This leaves the field open to legal disputes between the nominee and the legal heirs, especially if the policyholder dies intestate. So, to avoid such complications, insurers prefer not to have resident partners as candidates. ”
Let’s first talk about the company health insurance that employers give to their employees. Also known as group mediclaim policies, these plans are extended to protect both employees and their families keeping in mind the rising costs of medical expenses. Many IT and financial services companies allow their employees to include their resident partners for health insurance benefits.
Floating family policies cover legally recognized relationships. While lifelong relationships are not considered illegal, no health policy covers lifelong relationships, forcing partners to opt for individual health plans.
Resident partners can be named to mutual funds subject to the presentation of certain documents.
âA resident couple must provide proof of cohabitation and submit a relationship statement to make the partner an agent for the financial product. The same can apply to LGBTQ people, but they cannot provide proof of marriage because same-sex marriages are not legal in our country. There is always a risk that biological family members will challenge the candidate’s rights after the person’s death (the will must clearly state that the candidate is the beneficiary). In the absence of clear rules protecting the rights of beneficial owners, same-sex partners can choose to enter into a business relationship and hold joint accounts legally. Specialized professional advice is recommended, âsaid Raj Khosla, Founder and Managing Director of MyMoneyMantra.
Since there is no formal law regarding the financial rights of resident couples, it is necessary to have a law in place that can guarantee appointment rights to both resident couples and legally married couples.
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