Assignment form: the policyholder has to send the assignment form or application to theinsurance company providing details of the policy that has to be assigned and those of the assignees.
These includes the names, address, contact information, signature of the assignee and his relationship with policy holder and the reason for assignment.
Did you know you can transfer your insurance policy to another person. For example, you may for whatever reason want your spouse or any family member to be the beneficiary of an Insurance Policy.
I culled this tip from the “Businessday This is money” which I find quite useful.
How To Assign Your Insurance Policy
Documents: along with the form the policy holder should send the original policy and KYC documents of the assignee. It should be signed by at least one witness whose name and details should be provided in the form.
Processing : once the documents are submitted to the insurance company, latter will take 10-15 working days to process, the request can make the necessary changes in its records.
Endorsements: the assignments can be endorsed on the policy documents or notarized assignments deeds on a stamp paper confirming that it can be executed. The assignment can be revoked at a later data by the policy holder. In such a case a no objection certificate has to be submitted by the assignee.
POINTS TO NOTE
- Assignments in a policy takes a precedence over nomination.
- A nominee will receive the benefit of an insurance policy only on the death of the insured.
- An assignee will get the ones that are paid out, even during the lifetime of the insured.
- Endorsing the assignment on the policy, documents can save hassle of getting a stamp paper for executing the assignment deeds.