An assignment is the transfer of benefits and rights in the policy to a particular individual or entity.
It can be done partially or totally.
An assignment is done by requesting the insurer with reasons and terms, to issue a document called an endorsement upon the policy or a separate document. This request is signed by the transferor. Attested by a witness. Insurers may decline and communicate in writing within 30 days.
The assignment is effective from the date of endorsement. On request, the Insurer will approve the acknowledgment of the assignment in writing.
In case of the death of the assignee, the payout of the claim can be made to the nominee of the policy.
Assignment usually cancels the nomination in the policy. This has exclusions. like when the assignment is partial for a loan. In such cases, the nomination would only be reduced by the amount of the loan provided. Also, if the loan is repaid, the assignment is released and the nominee again secures the right to receive the claim payout.