Readers' questions on life insurance plans answered: From nominees to risks

A convertible life insurance plan provides the benefit of obtaining less expensive term plan at the beginning while maintaining the option to convert the same to an endowment plan in the future

Am I free to make anyone my nominee in a life insurance policy? In case of my death, will this person get to retain all the money? Can legal heir challenge if my nominee receives the funds?

Yes, you can appoint anyone you desire as a nominee for your life insurance policy. Section 39 of The Insurance Act, 1938 enables the holder of a life insurance policy to nominate a person or persons to whom the money shall be paid in the event of his death, while purchasing the policy or at any time before it matures for payment. The nominee