Death Benefit

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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 benefits1.

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 policyholder due to the original policyholder's inability to maintain the policy.