Assignment Insurance Form – Fill Out and Use This PDF

Assignment Insurance Form PDF Details

An insurance assignment is a legal process that transfers specific rights in a life insurance policy from the original owner (the assignor) to a new party (the assignee). This differs from updating a life insurance beneficiary: a beneficiary change only names who receives the death benefit, while an assignment transfers actual policy ownership or rights.

Types of Policy Assignments

There are two main types of insurance policy assignment:

• Absolute assignment permanently transfers all ownership rights to the assignee. Once complete, the original owner gives up all control over the policy and cannot revoke the transfer.
• Collateral assignment temporarily transfers specific rights, typically the death benefit, to a lender as security for a loan. Rights return to the original owner once the debt is fully repaid.

When Is This Form Required?

You typically need an insurance assignment form in these situations:

• Using a life insurance policy as collateral for a personal or business loan
• Donating a life insurance policy to a charity as part of planned giving
• Transferring policy ownership during estate planning or divorce proceedings
• Assigning group life insurance through an employer arrangement

For any assignment to take legal effect, both the assignor and the assignee must sign the completed form. The insurance company must then acknowledge the assignment in writing. Keep a copy of the acknowledged form for your records. Related documents include beneficiary designation forms and insurance claim forms.