How many people are involved in an Insurance contract?

PROPOSER - is the person who is 18 years and above, who pays premium and is the policyholder. Proposer gets the Tax benefit.

LIFE INSURED - is the person whose risk of life is covered in the policy and on whose death DSA can be claimed.

NOMINEE - is the person who gets the claim in the event of death of Life Insured.

APPOINTEE - is the person who helps nominee get the claim in case nominee is a minor.

Example - 

Case 1 - Ram buys insurance policy for himself

Proposer = Ram

Life insured = Ram

Nominee - Ram’s family member like his wife or mother

Case 2 - Ram buys policy for his wife Sita

Proposer - Ram

Life Insured - Ram’s Wife Sita

Nominee - Not required because Ram himself will be the Nominee as he has paid for the policy.

Nominee is only required when both proposer and life insured are the same person. 

Last modified: Tuesday, 5 Mar 2019, 17:25