Insurance Awareness - Life Insurance - LIC
Which of the following statements about nomination under the Insurance Act, 1938 is correct?
Which of the following statements about nomination under the Insurance Act, 1938 is correct?
medium Q4 of 15
Step-by-Step Solution
Step 1: Recall Nomination Provisions
Nomination is mandatory for all life insurance policies regardless of issue date and can be made in favour of a minor.Step 2: Evaluate Options
Nomination is mandatory only for policies issued after 2010 is incorrect as nomination is mandatory for all policies. Nomination transfers ownership rights to the nominee is wrong because nomination does not transfer ownership. Nomination cannot be changed once made is incorrect since nomination can be changed anytime.Final Answer:
Nomination can be made in favour of a minor → Option DQuick Check:
Nominees can be minors; in such cases, the benefits are held in trust until the minor attains majority.
Quick Trick: Nominee can be a minor; ownership remains unaffected.
Common Mistakes:
MISTAKES- Believing nomination transfers ownership or cannot be changed.
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