FAQs

Insurance Board is a line agency of Nepal Government, established to regularize, systematize and develop Insurance Industry.

Life Insurance is an agreement that guarantees payment of a stated amount of monetary benefits at the end of a specified term or on the death of the life insured.

Life Insurance provides for financial security in the event of death or on the inability to earn due to physical disabilities. Besides providing for financial security in the case of one's untimely death, it can be used to accumulate a kitty for your old age, systematically build assets, for funding your child's education and also for saving on taxes.

If death takes place during the term of the insurance policy, then the nominee receives the sum assured plus the bonus, if any.

The insurance sector is classified into Life and Non-Life (Or General Insurance as we know it).

This is one of the ways to save money while buying life insurance. As your top priority, look for a policy that meets your needs.

Many financial experts consider a term life insurance or whole life insurance policy to be the cornerstone of sound financial planning.

The amount of life insurance you decide to purchase depends on your anticipated final expenses and your family's projected monetary needs in the future. 

A beneficiary is the person or entity you designate to receive the proceeds (death benefit) from your life insurance policy. 

Nomination is a right conferred on the life insurance policyholder to appoint a person or persons to receive the policy monies in the event of the policy becoming a claim by death. Any policyholder, who is a major and the life insured under a policy, can make a nomination.
A nominee is the person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured.

While nomination is an authorization to receive the policy monies in the event of death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. Further, the nomination can be revoked or cancelled at any time during the lifetime of the policyholder at his will and pleasure or by a subsequent assignment.

On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities of the insurance policy in favor of the assignee.
 

The following details are necessary when filling in the proposal form; full name of the nominee, address, the relationship between you and your nominee and name of father or mother of the nominee.

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