What Does It Mean When A Life Insurance Policy Is Assigned? 
When a life insurance policy is assigned , it means that all the rights of owning the policy are transferred to someone else . An absolute assignment will usually involve the entire policy , and be permanent . A collateral assignment is usually connected to a loan , and the rights to the policy are ended when the loan is paid off . Also , the beneficiary of the policy with collateral assignment gets the excess beyond what must go to pay off the remainder of the loan . 