Have you ever thought who is supposed to get the life insurance claim money after the insured person's death? Is it the nominee or is it the legal heir or is it the wife and children? Who is the real heir to the claim money? Well the answer to this is that the money that one gets as life insurance claim is to be paid in the hands of the nominee mentioned by the policyholder in his policy document. But, he or she is not the only claimant to that money.
The nominee only gets the money in his/her hand from the insurance company. This money is then to be distributed to all the legal heirs of the deceased as per their legal share. This includes his wife, kids ,dependent parents etc. Thus , the nominee can not claim the full money as his or her own.
In lot of cases, due to lack of understanding of this legal clause, the nominees refuse to pass on the legitimate share to other legal heirs and as such the money gets locked in a legal battle. So, one must avoid going to courts etc as it can take time during which period no one gets to use the money. This will result in the dependents not getting the money when they need it the most.So, one must try and avoid this situation by mutually settling the issue between the various legal heirs.