1. 63333 POINTS
    Peggy Mace, Certified Senior Advisor (CSA)®PRO
    CEO, Outlook Life, Inc, Most of the U.S.
    Irrevocable Assignment of Life Insurance can refer to irrevocable assignment of ownership and/or benefits.  

    If you assign ownership of your policy irrevocably to another party, you can no longer make any changes to the policy. This type of assignment is often used for tax purposes, by assigning ownership of the policy to an Irrevocable Life Insurance Trust (ILIT).

    If you assign benefits of your policy to another party irrevocably, they will receive the payment when you pass. This type of assignment is often used to designate life insurance to be used for funeral expenses under Medicaid spend down guidelines.
    Answered on July 25, 2013
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    An assignment means that you forfeit your rights, at least temporarily, to property.  In this case you are talking about an insurance policy.  The person to whom the rights have been assigned can change the provisions of the policy, and access the values of the policy.  This is an effective way to move life insurance completely out of your estate.
    Answered on June 26, 2014
  3. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! In insurance speak, an "assignment" means that something has been transferred to someone else. An "irrevocable assignment" means that transfer is permanent, and cannot be undone. So an "irrevocable assignment" of a life insurance policy means that the policy is transferred from one party to the ownership of another. That second party now has the rights to change the beneficiaries, and all other rights that go with the ownership of the policy. I hope that helps - thanks for asking!
    Answered on June 26, 2014
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