As the term suggests, nominee is a person who is nominated or appointed by the policyholder to look after his/her financial accounts, assets, etc., after his death. It is the responsibility of the nominee to disburse the proceeds among the legal heirs.

A beneficiary is an individualwho has a financial interest in the life of the policyholder. The beneficiary can be either the legal heirs or financial institutions like banks who have provided loan/ finance to the policyholder.

In certain cases, the nominee and beneficiary can be the same person.