A husband may assign his policy to his wife, for example.
However the assignment occurs, there are a number of conditions which should be understood in relation to assigning the rights to a Hong Kong Life Insurance plan.
If the loan is repaid before the borrower's death, the assignment is removed, and the lender is no longer the beneficiary of the death benefit.
Insurance companies must be notified of the collateral assignment of a policy; other than their obligation to meet the terms of the contract, they remain disinterested in the agreement.
In this case the assignee is only able to receive the loan amount plus any interest from the policy in the event of the insured’s death.
In order for either type of assignment to be undertaken it must first be ensured that the rights of any named beneficiaries under the policy at the time of the assignment are not violated.
When choosing to assign a policy it is important to realize that it is not the insurance company’s role to validate the assignment – the insurer will not tell you if assigning your policy is the right move.
Consequently, it is always a good idea to consult a legal professional before assigning your life insurance policy in order to confirm validity.
Once you have completed your quotation request an expert CCW Global insurance broker will contact you directly to further discuss your coverage requirements.
You can learn more about this process by clicking Our Life Insurance Quotes.