The policy in life insurance can be assigned freely for a legal consideration or love and affection.
Either the assignment shall be complete and effectual only on the execution of such endorsement on the policy itself or by a separate deed.
Notice for this purpose must be given to the insurer who will acknowledge the assignment.
Once the assignment is completed, it cannot be revoked by the assignor because he ceases to be the owner of the policy unless reassignment is made by the assignee in favor; if the assignor.
An assignee may be the owner of the policy both on the survival of the life assured, or 611 his death according to the terms of the transfer.
The life policies are the only policies, which can be assigned whether the assignee has an insurable interest or not.
Life policies are frequently charged, assigned or otherwise dealt with for they are valuable securities because a fixed sum is undoubtedly paid, in life policies excepting a few, say, pure endowment and temporary policies.
How Nomination Works in Life Insurance
The holder of a policy of life insurance on his own life either may at the time of affecting policy or at any subsequent time before the policy matures, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death.
A nomination can be canceled before maturity, but unless notice is given of any such cancellation to the insurer, the insurer will not be liable for any “bona fide” payment to a nominee registered in the records.
When the policy matures, or if the nominee dies, the sum shall be paid to the policy-holder or his legal representatives.