New answer on: Who Is Assignee In Life Insurance?

By: David Pipes

David Pipes — Thu, 03 Jul 2014 18:06:57 +0000

Most life insurance policies do not have an “assignee.” A policy is assigned as a requirement of either a lender or someone else to which an obligation is due. When death occurs the insurance company contacts the assignee and satisfies the assignee’s claims prior to distributing the balance to the beneficiary. If you have a $500,000, and borrow $50,000, if required the owner of the policy can assign it to the lender. In the event of death the company will satisfy the creditor ($50,000 or less) and pay the balance to the beneficiary.

By: Peggy Mace

Peggy Mace — Sat, 10 Aug 2013 19:54:45 +0000

The Assignee in Life Insurance is the person, organization, business, or other entity to whom the policy proceeds are assigned. E.g. The assignee may be a lender who will receive the death benefit upon the death of the person owing the debt. However, the assignee only receives the remaining debt that is owed to them; the excess of the life insurance proceeds go to the beneficiary listed on the policy.

By: Steve Savant

Steve Savant — Fri, 09 Aug 2013 20:35:18 +0000

Assuming the question is an inquiry into the rights to assign a policy, the policy owner has such rights. Those rights extend to changing primary and/or contingent beneficiaries as well as assigning or endorsing the policy's face amount and/or cash values. The power of policy assignment is in the purview of the policy owner.