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A policy assignment provision in a life insurance contract is one that permits the owner of the policy to sell, give or to pledge the policy as collateral. It is a common, but not universal, provision in modern policies.

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โˆ™ 2010-09-14 14:31:08
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Q: What is a policy assignment in a life insurance policy?
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What is Absolute Assignment of Life Insurance Policy?

Absolute assignment of a life insurance policy should be explained the the Assignment Clause of your life insurance contract. This is a feature in a life insurance policy allowing a policyowner to freely assign (give, or sell) a policy to another, or institution. The fact that life insurance is freely assignable makes it a useful financial instrument through which to secure a loan.

What does absoloute assignment mean in life insurance?

There are 2 types of assignments in life insurance. Absolute Assignment - This means that you give up all of your rights to a life insurance policy forever. An absolute assignment may be used if you are selling your life insurance policy, or during a divorce where you give up all rights to your policy. Collateral Assignment - A collateral assignment is when you give up your rights to a policy until you have satisfied your collateral requirements. A loan is a classic example where a bank may require that you get a life insurance policy with a collateral assignment. If you still owe the bank money when you die, the bank would be repaid its money and any leftover would be paid to your beneficiaries.

Can you change insurance policy as needed?

No, a insurance policy can not be changed.....rather it may be alter by assignment ( transfer of the ownership)...

It is not important to have a life insurance policy.?

It is not important to have a life insurance policy.

What is the executor on a life insurance policy?

The Policy Holder of a life insurance policy is the executor of the said policy.

How can you use your life insurance as collaterol?

If you are borrowing money from a bank, the bank may require a collateral assignment of a life insurance policy in order to pay off the loan should you die prematurely. A collateral assignment will pay the bank off first in the event of your death with any leftover paid out to your beneficiaries. Once your loan is paid off, you can have the collateral assignment removed from your policy.

What is another word for whole life insurance?

You can call a whole life insurance policy as a "Non-Endowment Life Insurance Policy".

Life Insurance Policy?

form_title=Life Insurance Policy form_header=Protect your loved ones with a lifetime of financial security. Find a life insurance policy customized to fit your needs. What type of life insurance policy do you want to buy?= () Term Life Insurance () Permanent Life Insurance () Both () Not Sure How large of a life insurance policy do you want to buy?=_ Who will it cover?=_ Who would you list as beneficiary?=_

What is portable life insurance?

A life insurance policy is "portable" when upon leaving the group policy, you transfer your life coverage to an individual life policy with the same insurance carrier with no changes to the policy or increase in premium.

What policies are offered by General American Life Insurance?

There are many policies offered by General American Life Insurance. These include the Variable Life Insurance policy, the Condo Insurance policy and the Boat Insurance policy.

How do you locate a life insurance policy?

how do you lacate a life insurance policy that was with southern life and health insurance company 30 years ago

Can the executor get the amount of the life insurance policy?

NO.. unless the policy does not have nomination. Only nominee will get the proceeds of life insurance policy.

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