My loan from SBI is about to sanction. During the processing stage, i was asked to buy the Rinn Raksha policy from SBI life which I denied citing that this is not a good policy and i would rather go for term insurance policy.
I have taken SBI eShield term insurane policy with cover of 50 Lakhs and My loan amount is 25 Lakhs.
My question is that if I was required to assign the policy to bank then how bank & nominee will get the benifit amount in case some misfortune happenes. Will Bank keep the balanced amount and give the remaining amount to nominee??.
In the policy document, it is written that only complete assignment of the policy can be done not the part of the policy which means that all the existing nominees will be cancelled.
Please guide me the through this process.