4 min read
Updated on Oct 31, 2022
As soon as we start having a steady income, we should start investing our money, and it really does not matter whether the scale is large or small. One of the things that is well worth investing your money in, is a life insurance policy. As a matter of fact, life insurance has become a familiar term to almost all the families in urban India. The biggest reason for its widespread popularity is that a life insurance policy comes with a heap of benefits. As we talk about life insurance, we must be aware of the two commonly used terms, assignment and nomination. So, let us talk about these two terms here today.
Assignment in insurance means transferring the rights, title, and ownership of the policy from a policyholder to another individual or even an entity. The person who is involved in transferring the policy is called an assignor and the person to whom the policy has been transferred is called the assignee. Under section 38 of the Insurance Act, 1938, assignment is regulated.
An assignment is further divided into two types, such as Absolute Assignment and Conditional Assignment. Let us discuss them a bit here.
Things that you should know about Assignment
Nomination in insurance is a right that the policyholder gets that gives the authority to him or her to appoint an individual to receive benefits in case the life assured passes away. The person who the policyholder appoints to get death benefits is a nominee. A nominee is usually a family member. Nomination runs under Section 39 of the Insurance Act, 1938.
Here are some of the types of nominees mentioned below:
Under this type, policyholders are allowed to change their preference of nominees several times. However, the current nominee must supersede all the other nominees.
The basic difference between nomination and assignment is the purpose. The nomination helps in protecting the interest of the policyholder as well as the insurance provider in providing the claim benefits under a life insurance plan. While an assignment helps in protecting the interest of an assignee for availing of the financial benefits under a life insurance policy. As a policyholder, you must be aware of both concepts to choose the best option that suits your needs. This can help you in making the most of your insurance policy and care for your loved ones even when you are not there.
Also Read: Grace Period in Term Insurance Policy
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
View this post on Instagram
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
LIC of India is one of the most trusted brands when it comes to securing the financial future of your family and dear ones. Let.
Term Insurance Policy - Why Buying a Term Plan is Important? While we make plans and keep chasing our dreams, seldom do we realize that.
There is a good reason to choose a basic term insurance plan as against a return of premium (ROP) plan. Let’s take a look at.
Parenting brings along a lot of new responsibilities together with the unbound joys of life. Often, the birth of a child makes people start planning.
Policy lapse is a key reason why many policyholders suffer insurance setbacks. Knowing what is policy lapse in term life insurance and how to prevent.
Zero-cost term insurance is a policy that allows the insured to get back the premium amount paid during the course of the term if he/she.
It is necessary to get a medical check-up done while buying a term insurance policy, which was earlier done by physically visiting a clinic. However,.
Term insurance is the most basic investment option available at a reasonable price. We are discussing the process to avail an ideal term insurance plan.
The Tech Term Plan launched by LIC is a pure protection term plan that is exclusively available through online purchase. Let us analyse the reasons.
With a good term insurance plan, you can be assured to cover your beloved family from any financial calamity in your absence. But how sure.
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.