Absolute Assignment


The act of complete transfer of ownership of a life insurance policy from one party to another without any conditions is called an absolute assignment. This shift of ownership is irreversible.


The individual who transfers the ownership/right of the policy is referred to as the assignor. And the person to receive the ownership of the policy is called the assignee.

After the absolute assignment of the life insurance policy is executed, the assignee gains complete control of the policy. All benefits, liabilities, and rights under the policy are shifted to the assignee. If the assignee wishes, he/she may again transfer the policy to someone else.


Rahul owned a ULIP life insurance policy. After a few years of premium payment, Rahul urgently needed money for his daughter’s education. Instead of surrendering the policy, Rahul thought of using his life insurance policy as collateral for the loan. He asked his friend for help, who agreed to the condition. Rahul(assignor) transferred his ULIP to Rajat(assignee) and the absolute assignment was in effect. If, after the transfer but during the policy term, anything happens to Rahul, no claim benefit will be paid to him. Because he had transferred the policy ownership to Rajat.

As the maturity proceeds, all the benefits under the ULIP will be directly paid to Rajat. In case of the unfortunate death of Rajat during the policy period, his family will receive the death benefits