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.
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.