The term ‘Nominee’ refers to a person whose name has been nominated by the policy holder, authorizing him/her to take the proceeds of the policy after the death of the policy holder. It is then the responsibility of the nominee to disburse the proceeds as instructed amongst all legal heirs. The term ‘beneficiary’ refers to an individual who displays financial interest towards the policy holder. This could either be a legal heir of the policy holder or a bank/financial institution that has earlier provided loans/financial assistance to the policy holder.