This page allows you to freely download an editable Assignment of Life Insurance word document. Adapt and customize this contract to suit your specific needs, whether it’s for a collateral assignment in a life insurance contract, or granting authority to assign your term life insurance as loan collateral.
Browse through our comprehensive material and let it guide you through every step of lenders accepting life insurance as collateral. The helpful guidance included within the document ensures you understand each detail before finalizing your insurance policy collateral assignment form.
ASSIGNMENT OF LIFE INSURANCE POLICYThis Assignment of Life Insurance Policy (“Assignment”) is made on this [Date] by [Original Owner’s Full Legal Name] of [Original Owner’s Complete Address] (“Assignor”) in favor of [New Owner’s Full Legal Name] of [New Owner’s Full Legal Address] (“Assignee”).
BACKGROUNDThe Assignor is the owner of a life insurance policy, specifically Policy Number [Policy Number], issued by [Insurance Company Name] (“Insurance Company”) and wishes to transfer all rights, title, and interest in the said policy to the Assignee.
ASSIGNMENTIn consideration of the sum of [Amount in Words] dollars ($[Amount in Figures]) and for other valuable consideration, the receipt of which is hereby acknowledged, the Assignor hereby assigns, transfers and delivers to the Assignee, the said policy and all the rights, title, interest, claims and demand in the said policy.
ASSIGNOR’S REPRESENTATIONSThe Assignor represents and warrants that: (i) the Assignor is the legal owner of the policy and has the authority to assign the policy; (ii) the policy is free from all liens and encumbrances; and (iii) the Assignor has not previously assigned or transferred the policy or any interest therein to any person other than the Assignee herein.
ASSIGNEE’S OBLIGATIONSUpon the execution of this Assignment, the Assignee shall assume all obligations and responsibilities under the policy. The Assignee agrees to make all future premium payments and to comply with all terms and conditions of the policy.
INDEMNIFICATIONThe Assignee shall indemnify and hold harmless the Assignor against any claims, damages or liabilities resulting from any breach of the terms and conditions of the policy by the Assignee.
NOTICE TO INSURERAfter the execution of this Assignment, the Assignor or Assignee shall give the Insurance Company written notice of this Assignment. The Insurance Company does not guarantee or in any way take responsibility for the validity of this Assignment.
GOVERNING LAWThis Assignment shall be governed by and construed in accordance with the laws of the state of [State].
ENTIRE AGREEMENTThis Assignment constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, both written and oral, between the parties with respect to the subject matter hereof.
IN WITNESS WHEREOF, the Assignor has executed this Assignment as of the day and year first above written.
Assignor (Signature) Assignee (Signature)
Assignor (Print Name) Assignee (Print Name)
Other Useful ContractsIn navigating the various stages of life, you may find that you need to secure and manage assets for the benefit of your loved ones. If you found the Assignment of Life Insurance template useful, there are other related documents that can further assist in your financial and estate planning.
One of these essential documents is a Last Will and Testament. This legal document allows you to detail how your assets, including life insurance policies, will be distributed upon your passing. It provides clear instructions on how your estate should be divided, thereby eliminating potential disputes among heirs. Creating a Last Will and Testament goes hand in hand with the Assignment of Life Insurance, ensuring that all your resources are properly allocated according to your wishes.
Alongside these, another document you might want to consider is the Revocable Living Trust. This document allows assets to be placed in a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death. The Revocable Living Trust works in conjunction with the Assignment of Life Insurance by offering another means of transferring wealth while avoiding the probate process.
Lastly, managing health considerations alongside financial matters is crucial. The Healthcare Power of Attorney is a legally binding document that grants a chosen representative the authority to make healthcare decisions on your behalf should you become incapacitated. Similarly, having an Living Will is critical as it outlines your preferences for medical treatment if you can no longer communicate or make decisions for yourself. These two documents ensure that not only are your financial affairs in order, but also your health-related preferences are respected and adhered to.