What are the rights of other legal heirs? Can they dispute my nomination?
When a life insurance policy is issued, the life insured is asked to nominate a person who would receive the money in case something happens to him. So, for all the in-force and non-assigned policies, the person named as nominee is entitled to receive the policy proceeds after he produces a valid discharge to the insurers. But it does not give the nominee an absolute right over the money received in case there are other legal heirs of the life assured. Further, nomination can be revoked or cancelled or changed at any time during the lifetime of the policyholder at his will and pleasure. Assignment of an insurance policy means the transfer of all rights under the policy in favour of the assignee—the person in whose favour the policy is assigned. In case anything happens to the policyholder, the assignee will be entitled to get the proceeds of the policy and after adjusting the amount of outstanding balance of loan, he will be obliged to transfer the balance to the nominee. The nominee w
