Page 39 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

cannot be owned again by the assignor.

Example- Nitin owns a life insurance policy of Rs 10 lakh and he

wants to gift his life insurance policy to his mother. So he will

have to go for an absolute assignment of the policy. After the

assignment of the policy, the death benefit or maturity benefit

of the life insurance policy will be paid to Nitin’s mother. Nitin

will not have any right over the policy and its benefits. After the

assignment of the policy, if his mother wishes to gift this policy

to someone else, then she can easily do so subject to the

clauses and acceptance of assignment request by the insurance

company.

2. Conditional Assignment - Conditional assignment means the

transfer of rights will happen from assignor to assignee subject

to the specified terms and conditions.Once the conditions are

fulfilled, then the life insurance policy is assigned back to the