What Is An Assignee On A Life Insurance Policy? 
An assignee on a life insurance policy is a person or entity to whom life insurance proceeds would be paid to cover a debt or other obligation . Usually , the beneficiary of the policy is stated as the Insured 's choice -LRB- e.g. spouse -RRB- . Then an assignment form is filled out which would assign to the lender the amount that is owed at the time of the Insured-borrower 's death . The remainder that is left after paying off the loan to the assignee , is given to the beneficiary . 