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Assignment means:
the transfer of rights under an insurance policy to another person or business. For example, to secure a debt, it is not uncommon for the policyowner to transfer to the creditor the owner's right to borrow on the cash value of the policy. Life insurance policies are freely assignable to secure loans and notes; property and casualty insurance policies are not. Creditors such as banks often have printed assignment forms on hand at the time of making loans. The assignment or transfer of an insurance policy may cause the future insurance proceeds to be taxable income.

Description and Definition of Assignment

An assignment is the legal transfer of rights, property, or interest to another person called an assignee. You cannot avoid tax on income by assigning the income to another person.


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Further Reading

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