Nomination does not pass on the property in the Policy. If Nominee dies when the Policyholder is still surviving then the nomination would be ineffective. Nomination has no effect if the Policyholder is surviving. If Nominee dies after the death of the policyholder but before receiving policy money, then also Nomination becomes ineffective and money can be claimed only by the Legal Heirs of the Policyholder. In the case of Children's Policies, Nomination is not done until the Child becomes major.
Policy holders are eligible to take loans on their policies subject to certain rules.
The policyholder has to apply for a loan in a prescribed form and submit the Policy Bond with the form duly completed. A policy holder can repay the loan amount either in part or in full any time during the term of the Policy. The minimum repayment should be Rs. 50 and thereafter in multiples of Rs. If the loan amount is not repaid during the term of the Policy or early claim, the amount of loan plus interest, if any, will be deducted from the claim money and the balance amount will be paid to the claimant.