What is the difference between nomination and assignment?

Nomination is an authorisation to receive the policy benefits in the event of death of the life assured. A nomination does not give the nominee an absolute right over the money received to the exclusion of other legal heirs, who may continue to have a legal and valid claim over the money so received by the nominee.

Nomination can be revoked or cancelled at any time by the policyholder at his/her will or by a subsequent assignment.

On the other hand, Assignment of an insurance policy is a legally valid and enforceable transfer or assignment of all the rights in the insurance policy by the policyholder in favour of the assignee.

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