Life Insurance Basics
What is an absolute assignment of a life insurance policy?
An absolute assignment transfers all ownership rights of a life insurance policy to another party. The original owner gives up all rights to the policy. Absolute assignments are used in viatical settlements, charitable giving, and business transactions.
Key Points
- Absolute assignment: transfers all ownership rights to another party
- Original owner gives up all rights
- Used in: viatical settlements, charitable giving, business transactions
- Irrevocable: cannot be undone without the new owner's consent
- An independent agent can help you understand assignment options