Absolute Assignment

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What is Absolute Assignment?

Absolute Assignment in insurance refers to the complete transfer of all rights, liabilities, and benefits of a life insurance policy from the policy owner (assignor) to another person or entity (assignee). After the assignment, the assignee becomes the new policy owner and is entitled to all the benefits such as death benefits and maturity benefits.

Why Opt for Absolute Assignment

People often choose absolute assignments for various reasons such as:

• To use the insurance policy as collateral for a loan, with the lender becoming the assignee.
• To gift the insurance policy to someone else, making the recipient the new policy owner.
• To change the policy holder due to the original policyholder's inability to maintain the policy.

When Can You Opt for an Absolute Assignment?

Absolute assignments can be done at any time after the policy is issued. However, it requires the mutual consent of both the assignor and the assignee.

How to Conduct an Absolute Assignment?

To conduct an absolute assignment, the policy holder needs to submit a written request to the insurance company. This request must include details of the existing policy and the proposed assignee. The assignor and the assignee must both sign this requests. Once the insurance company approves and registers the assignment, the assignee becomes the new policy owner