4 min read
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.
And 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
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.
Deaths Which Are Not Covered Under Term Insurance Term life insurance secures the family of the insured financially in case of unfortunate demise of the.
Term Life Insurance vs Traditional Life Insurance Policy - What are the Major Differences If you are confused between a term insurance and a traditional.
A home loan makes buying your dream house a reality. But it does not come without a major implicit risk - that of inability to.
Non-Linked Non-Participating Term Insurance Plan - Detailed Guide If you know about term plans, you may have heard about the non-linked and non-participating term insurance.
Tele Medical Checkup for Term Insurance The pandemic has changed the very basic way we used to operate in our day-to-day lives. Remote work has.
Things You Can Do When Your Term Insurance Policy Expires A term insurance plan provides monetary security to a family in the absence of the.
Term Insurance Surgical Care Benefit Rider Riders in term insurance are designed to enhance the coverage of the policy and of course provide additional benefit.
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 © 2022 Mahindra Insurance Brokers. All Right Reserved.