What Does It Mean To Assign Life Insurance? 
There are actually two common but different ways to assign life insurance . The first way to assign is with assigning the beneficiary for a temporary purpose . An example would be a financial institution loaning a substantial amount of money may require a person to assign them as beneficiary until the loan is repaid . Once this loan is repaid the assignment of beneficiary would go back to the original beneficiary , unless specifically changed again by the policy owner . The second common practice of assignment of life insurance is to assign a new owner of a policy . This is most common with cash value life insurance which a parent or grandparent purchased on a minor child . A minor can not own a policy with financial decisions , so an adult , usually parent or grandparent , will be owner until the child becomes an adult . The assign is made from the parent or previous owner to the insured child as the new owner . 