LIC Policy Assignments / Nominee Procedure?

[samir]

1. Is assignment and nomination of the LIC policy is one of the same thing?
2. If insured wants to assign his policy to his/her father/mother, whether he/she can do so and also change his/her nominee, whether it is possible. If both these things are possible, then what is the procedure?

Thanks in advance.

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[JindalGaurav]

Assignment and Nomination are two different terms.
Nomination - Your nominee, who would receive the benefit when some thing happened to you.Eg. LIC Policy nominee
Assignment - You have assigned the benefits of the policy to anybody to get something. For eg. You have taken a loan and as security you have assigned the LIC policy.

Nominee can be changed anytime. Just get the form from nearest LIC office. It has to be submitted at the branch where the policy was issued.
Regarding Assignment - Usually one assigns a policy to a bank or lender. For that you have to fill up the necessary forms and the policy will be handed to the assignee after endorsement.

You do not have to assign your policy to your parents. Just change the nominee.

[kagarwal]

Nominations
While taking insurance policy, the person has to indicate his nominee (mostly his/her close relatives) to receive money incase of unfortunate happening. The nominee can also be a minor but an appointee (who's a major) has to be appointed till the minor nominee become major. The policyholder can change the nominee anytime during the policy term. It should be remembered that unlike in assignment, the nominee has no right to claim any amount as long as the policyholder survives.

Assignments
This is nothing but transferring of interest of the policyholder to another person. Examples - As a collateral security for loans

[amit_kumar09]

Very Good explanation about Assignments and Nominations.

[CONFUSED]

Is assignment and nomination of the LIC policy is one of the same thing?

There are two kinds of assignments
1. Absolute Assignment
2. Conditional Assignment
Absolute Assignment:
In an absolute assignment, all rights on the policy both maturity and death benefits are transferred to the assignee. Example if you as a proposer made an absolute assignment, say as a gift to a friend, then the all rights on the policy are transferred to your friend. The assigne receives the maturity and death benefits. The proposer which is you, will lose all legal rights on your policy. You cannot revert back an assignment. Any changes thereafter can only be done by the assigne which is your friend.
Conditional Assignment:
Conditional assignment has some conditions and clauses attached to the assignment. The assignment is only valid as per the condition.

Absolute Assignment is used in case of gifts.
Conditional Assignment is used in case of mortgages,etc.