The difference between assignment and nomination are
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1. On assignment of life policy, all the right of the policy holder passes to the assignee. Nomination does not deprive the insured of his disposing power over the policy. Nomination gives the nominee a bare right to collect the policy money in the event of his death.
2. Assignment can be effected either on the policy itself or by a separate deed. Nomination is made by endorsement on the policy. Nomination cannot be made by noting it on any piece of paper other than the policy itself.
ADVERTISEMENTS:
3. Assignment is irrevocable. Nomination can be cancelled or changed.
4. On assignment, the property in the policy passes to the assignee. Nomination confers on the nominee the right to receive the insurance money but does not provide for the title or the ownership of the money. A nominee gets only a beneficial interest in the policy.
5. Assignment of a life policy may be with or without consideration. But nomination is made without consideration.
6. Attestation is required in case of assignment. But no attestation is prescribed in the case of nomination.
ADVERTISEMENTS:
7. In case of assignment, money under the policy shall be paid to the assignee but in case of nomination, the money will be paid to the nominee if he survives the assured.