What Is Meant By The Surrender Value Of Loans On Assignment Of Policy And Nomination Of Life Policy?

Surrender value:
             If policyholder decides to surrender his policy before its maturity, the insurer pays him the surrender value. The term surrender value means sum amount, which an insurer agrees to pay to the insure on his surrendering his life policy to the insurer. Surrender value is calculated on the basis of the premium paid by the policyholder. It increases with each payment of premium.

Loans on policies:
               To obtain a loan on the security of the policy within its surrender value is one of privileges enjoyed by the policyholder. This facility can be enjoyed only after a certain number of premiums have been paid. The loans value is calculated on the basis of surrender value.

Assignment of life policy:
                 The assignment of a life policy means the transfer of the rights and liabilities of the assured to any one for consideration or as a gift. It must be in writing. The notice of assignment must be given to the in insurance company who will register it and inform the assignee about it.

Nomination of life policy:
                    The person to be nominates is called nominee. Such nomination can be made out any time before the maturity of policy. It is only in the event of death of the insured during the term of the policy that the amount secured is payable to the nominee. A nominee cannot be appointed to receive the sum assured when the policy is surrendered or in the event of the insured dying after the maturity of the policy and before be received the payment. A person can nominate only on the insurance of his own life.