Date of vesting

This is the date on which the policy rights vest in the life assured / annuitant. Under Children’s Differed Assurance policies or policies issued on the lives of children (minors) the policy rights vest in the life assured when the life assured reaches 18 years or 21 years of age. When a father purchases a policy on the life of his son who is a minor the risk cover does not commence immediately. Companies put their own conditions as to when the risk cover starts, e.g. after two years from date of commencement or after seven years of age, which ever is later. Though the minor is life assured he does not become policyholder during his minority. He is policyholder when he becomes  major and the policy vests in him. Only then he can nominate some one as a nominee under the policy. And he can enter into various transactions with the insurer on the policy. In annuity policy the annuitant becomes eligible for annuity when the policy vests in him. Date of vesting is given in the schedule of a policy.

Key words:

Life insurance
Schedule of policy
Policy bond
Date of vesting