This is the place where all of your questions on Life Insurance get answered! Pick
a relevant topic from the list below and get your queries answered:
The FAQs are meant for general reading only and should not be construed as legal advice. The answers provided would vary depending on the specifics of each case. FAQ contents may be subject to change from time to time on account of changes in laws and are not updated frequently. Please contact the company for specific information.
1. What is transfer or assignment
of a life insurance policy?
Transfer or Assignment is a method of transferring ones transferable interest in
a life insurance policy to another person or institution including as security for
repayment of loans.
2. What is the difference between
nomination and assignment?
While the nomination is an authorization to receive the policy moneys in the event
of the death of the life assured, it does not give the nominee an absolute right
over the money received to the exclusion of other legal heirs. Further, the Nomination
can be revoked or cancelled at any time during the lifetime of the policyholder
at his will and pleasure or by a subsequent assignment. On the other hand, assignment
of an insurance policy is a transfer or assignment of all rights and liabilities
to the insurance policy in favour of the assignee.
3. How to make an assignment or
transfer of a life insurance policy?
Assignment or transfer of a life insurance policy may be made by simply making an
endorsement to that effect in the policy document. Another way of transferring or
assigning the life insurance policy is by getting a separate assignment deed executed.
The former case is a preferred mode of assignment as it is exempt from further stamp
duty. An assignment should be signed by the Assignor or his duly authorised agent
specifically stating the fact of transfer or assignment and attested by at least
one witness.
