One of the prime reasons to take a life insurance policy is to ensure that your financial dependents are provided for. This is possible if you ensure that you have made the right nomination, which ensures that the policy proceeds go to the right person. A nominee is chosen at the time of buying a policy, when the policyholder fills the details of the nominee. As a policyholder, you have the flexibility to change the nominee during the tenure of the policy on as many times as you wish.