When you nominate your:
- Parents or
- Spouse or
- Children or
- Spouse and children
- Or any of them
Such person/persons shall be beneficially entitled to the amount payable, unless you are legally incapable of conferring this beneficial title.
When you conditionally assign your policy, it shall cancel the nomination till the time the assignment is in force. When you absolutely assign your policy, it shall automatically cancel the nomination.
Exceptions: the nomination shall not be cancelled when you assign your policy:
- To the insurer; or
- For taking a loan; or
- Against security; or
- On reassignment of your policy after repayment
In these cases, the nomination will get cancelled to the extent of the interest of the insurer or assignee in the policy. The nomination will get revived on repayment of the loan.