deed of assignment of life policy

How to Assign a Mortgage Life Insurance Policy

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If you’re on this here blog, I can assume a couple of things:

• you’ve either bought or are buying a house and
• you’ve either bought or are buying Mortgage Protection or Life Insurance because you have to.

I can also probably assume you’re a responsible adult – or at the very least, you’re very good at pretending, which as we all know: all the best people are.

Now, there is one thing you need to know.

This one thing is either coming to you too late, or just in the nick of time, depending on whether or not you now own a house.

The banks are great for mortgages, but they’re a rip off when it comes to Mortgage Protection Insurance in Ireland.

They’ll try to force you to buy their Mortgage Protection (a type of Life Insurance that will pay off the rest of your mortgage if you die) because:

• It makes it harder for you to switch your mortgage (if the bank even mentions the words “block policy”, you should dive out the nearest window)
• It’s more money for them, especially if they hoodwink you into adding Serious Illness Cover, which will go directly into their pockets even if you need it for medical bills!

You’re basically paying them so they can pay themselves if you die or get sick before you’re done paying off your mortgage.

Yes, it sucks.

No, there’s not a massive amount you can do about it except arm yourself with all the information you can.

Which is why I’m going to talk you through Mortgage Protection, buying it, and assigning it to your bank/lender.

How do you assign a mortgage life insurance policy?

• Arrange your policy (through a broker preferably – scroll down to find out why)
• Complete a Deed  of Assignment (it forms part of your legal pack that the bank sends to your solicitor)
• Send the completed Notice of Assignment and your policy schedule to the bank
• The bank sends the Notice of Assignment and the policy schedule to the insurer
• The nsurer assigns your policy to the bank and sends a confirmation letter to the bank

And that’s it, fairly straightforward, ignore the bank if they try to spook you by saying it causes delays if you don’t buy from them. It doesn’t.

What is mortgage protection/life insurance for a mortgage?

As I said above: it’s a type of insurance that pays off the rest of your mortgage if you die. You have to get it if you’re buying a house. You can buy it from the insurer directly, your bank/lender, or a broker who will usually work with all the insurers.

You also have the option of using existing Life Insurance cover (for example, if you already have a policy) as your cover.

To make that crystal clear, your options are:

Mortgage lender/your bank:

• Tied to the bank so they can only sell you their overpriced Mortgage Protection policy.
• Your premium forms part of your mortgage repayments so it’s hard to see how much you’re paying for your policy.
• It’s potentially a problem because: you should always shop around at all of the insurers to make sure you get a good deal.
• You know how bankers get slated all the time for being more concerned with lining their own pockets? Yes. That. Think about it.
• If you have a health issue and they can’t offer you cover, then you’re on your own.

Insurance brokers:

• Will advise on policies from all the  providers to recommend the best deal for you.
• You get all the information, so you actually know what you’re dealing with.
• Heavily discounted premiums compared to the banks
• If you have a health issue and one insurer can’t offer you cover, your broker can try elsewhere.
• A sound bunch of lads
• Can only sell their own policies, so you’re definitely not getting the best deal for you.
• Probably shouldn’t do. Known for being occasionally nefarious, but you do you, boo.

An existing policy:

• It’s a bit confusing but you can use an existing Life Insurance policy as your Mortgage Protection, presuming it’s equal to the value of your mortgage and runs for the same term – so if your mortgage is for 30 years and €200,000, your Life Insurance policy would need to match or exceed that (e.g. a 31 year, €201,000 policy works ; a 29 year, €199,000 policy doesn’t)
• You have to assign the policy to your lender, if this is the case. Essentially, it’s you saying, “yes, I want to use my Life Insurance policy to pay off my mortgage.”
• If there’s any moolah left over afterwards, it’ll go to your dependents.
• You’re better off having both Mortgage Protection and Life Insurance because it’s two pay-outs, but if you’re strapped for the cash, or have had some health issues since you took it out, assigning an existing policy can be a solid shout.

If you’ve already bought your policy and are wondering about how to actually assign it, I get round to that in a second.

By the way, you can’t use life insurance that you have through work (death in service benefit) for a mortgage.

Is Mortgage Protection/Life Insurance different?

Yes. Mortgage Protection is a type of Life Insurance that only covers your mortgage to your lender. Life Insurance leaves a tax-free lump sum to your dependents. They could use it to pay for literally anything they want.

A $2,500 human-sized replica mask of your cat, for example .

Is it confusing? 100 percent.

Is it confusing on purpose? 100 per cent.

My two cents? Get Life Insurance and Mortgage Protection. It’s two pay-outs. It won’t break the bank monthly, but it could mean an awful lot to your family down the line.

Think of it like this: A Mortgage Protection payout gives your family a mortgage-free home. A Life Insurance payout gives your family a replacement income. They need both, so you need both.

Can you change your Mortgage Protection policy?

Yes. Any time you want. It could totally be worth it for a better price or benefits, so seriously: look into it. A few euro in the difference might not seem like much, but take that €5 a month and multiply it out by 12 and then by the length of your actual mortgage (which could be up to 35 years) and you’d be surprised how much it’ll add up to.

Just look at that fiver go. €5 x 12 x 35 = €2,100.

And that’s before we go anywhere near the difference you could save if you wanted to switch your actual mortgage down the line.

And don’t mind your bank if they say that getting Mortgage Protection or assigning an existing Life Insurance policy will delay your mortgage or that they’ll look more favourably on your application if you do what they want.

Remember: It’s all a

They’re trying to scare you into buying their overpriced policy.

Tell them where to go.

Because you already know where you can get the  best mortgage protection quotes .

Why do you need to assign a policy to a bank?

To make it legal.

Otherwise, it’s a bit like two young fellas swearing loyalty by spitting into a handshake. You telling your bank about your existing policy is grand and all, but if anything happens, they want the legal papers to say they get any payout.

Otherwise, all they’ve got is a spitty handshake and no cover.

How do you assign a Life Insurance policy to a bank/your lender?

It’s a bit like giving your bank a gift. You take out the policy and pay the premiums. When you die (no ‘ifs’ here, pal), your bank gets any pay-out.

To assign the policy (or policies if you have taken two single life policies) you need to complete a deed of assignment for each policy,

The deed is a legal document that forms part of your legal pack. It’s written in legalese, which means it’s completely impenetrable to normal people.

You can try reading it, but honestly, you’ll have as much luck taking another crack at Finnegans Wake. At least then you can sound cultured if you pretend you read Joyce’s gibberish.

You have to sign the deed of assignment.

Listen, it’s a bit like Apple’s terms and conditions; everyone ticks the box and nobody has a clue what they agreed to. Have you just sold your soul to a factory wherever iPhones are manufactured? Possibly.

But you’re still gonna have to do it.

The bit you sign is called the Notice of Assignment. You sign it and send it back to your bank along with your mortgage protection certificate.

The bank then sends it to the insurer and the insurer notes the bank as the legal owner of your policy.

Now, because the assignment is in effect a legal transaction, the banks don’t let us get involved so it’s up to them to send the necessary documents in a timely fashion to the insurer.

Once it’s with the insurer, we can chase it and give the insurer a bit of a prod if you’re in a rush but until then, our hands are tied.

*That’s how it usually works but each bank may do things differently.

What happens when the insurer receives the notice of assignment?

The insurer will assign your policy to the bank, so the bank becomes the owner of your policy and gets any pay-out.

Who notifies your bank that the policy has been assigned?

The insurer will send a confirmation of the assignment letter to the bank stating:

“Thank you for your recent Notice of Assignment in respect of the above-numbered policy. We have noted your interest and confirm that we hold no prior charge on this policy.”

Once the bank has confirmation of the assignment, they’re happy to issue your mortgage cheque.

How do I assign two life of another mortgage protection policies?

If you’re buying as a couple we recommend two single life policies to reduce any potential inheritance tax.

Assigning two policies works in the same way as assigning a single policy only you will have to complete a Deed of Assignment for each policy.

Is there a fee payable to assign a policy?

And just like that, you’ve assigned your policy.

Your TL;DR of tips, once more:

• Don’t buy Mortgage Protection from your lender. You likely won’t be getting the best deal and it makes it a little trickier if you want to switch your mortgage down the line.
• You can use an existing Life Insurance policy as your Mortgage Protection. However, you’re probably better off keeping them separate, as two policies = two pay-outs and an easier life for your family.
• Mortgage Protection = covers your mortgage. Life Insurance = covers you.
• If you’re bringing your own policy to the table, you’ll need to legally assign it to your bank by following the steps in this article. It’s basically you, your solicitor, your bank and insurer formally saying that the policy will pay-out your mortgage if you die.
• Before you buy any policy, make sure you go with a reputable broker so that you know you’re actually getting the best deal.

That’s all, folks!

Over to you…

I hope that clears up how to assign a mortgage life insurance policy to a bank. It’s simple, no matter how difficult your bank may try to make it seem.

But if you have any questions, please complete the short form below and I’ll be right back or even better: call me

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What is ‘Assignment’ of Life Insurance Policy?

Insurance is a contract between the insurance company (insurer) and you (policyholder) . It is a contract with full of jargon. As much as possible, we must try to understand all the insurance terms mentioned in the policy bond (certificate) . One such insurance jargon which is mostly used is Assignment .

If you are planning to apply for a home loan, your home loan provider may surely use this term. So, what is Assignment? Why assignment of a life insurance policy is required? What are different types of assignment? What are the differences between Assignment & Nomination?

What is Assignment?

Assignment of a life insurance policy means transfer of rights from one person to another. You can transfer the rights on your insurance policy to another person / entity for various reasons. This process is referred to as ‘ Assignment ’.

The person who assigns the insurance policy is called the Assignor (policyholder) and the one to whom the policy has been assigned, i.e. the person to whom the policy rights have been transferred is called the  Assignee .

Once the rights have been transferred from the Assignor to the Assignee, the rights of the policyholder stands cancelled and the assignee becomes the owner of the insurance policy.

Assigning one’s life insurance policy to a bank is fairly common. In this case, the bank becomes the policy owner whereas the original policyholder continues to be the life assured on whose death the bank or the policy owner is entitled to receive the insurance money.

Types of Assignment

The assignment of an insurance  policy can be made in two ways;

• Example : Mr. PK Khan owns a life insurance policy of Rs 1 Crore. He would like to gift this policy to his wife. He wants to make ‘absolute assignment’ of this policy in his wife’s name, so that the death benefit (or) maturity proceeds can be directly paid to her. Once the absolute assignment is made, Mrs. Khan will be the owner of the policy and she may again transfer this policy to someone else.
• Example : Mr. Mallya owns a term insurance policy of Rs 50 Lakh. He wants to apply for a home loan of Rs 50 Lakh. His banker has asked him to assign the term policy in their name to get the loan. Mallya can conditionally assign the policy to the home loan provider to acquire a home loan. If Mallya meets an untimely death ( during the loan tenure) , the banker can receive the death benefit under this policy and get their money back from the insurance company.

• In case if the death benefit received by the banker is more than the outstanding loan amount, the insurer will pay the bank the outstanding dues and pay the balance to the nominee directly. The balance amount (if any) will be paid to Mallya’s beneficiaries ( legal heirs / nominee) .

How to assign a life insurance policy?

The Assignment must be in writing and a notice to that effect must be given to the insurer. Assignment of a life insurance policy may be made by making an endorsement to that effect in the policy document (or) by executing a separate ‘ Assignment Deed ’.  In case of assignment deed, stamp duty has to be paid. An Assignment should be signed by the assignor and attested by at least one witness.

Download absolute assignment deed sample format / conditional assignment deed format.

Nomination Vs Assignment

Nomination is a right given to the policyholder to appoint a person(s) to receive the death benefit (death claim) . The person in whose favor the nomination is effected is termed as ‘nominee’. The nominee comes into picture only after the death of the life assured (policy holder) . The nominee will not have the absolute right over the money (claim proceeds) . The other legal heirs of the policy holder can also recover money from the nominee.

(However, as per Insurance Laws (Amendment) Act, 2015 – If an immediate family member such as spouse / parent / child is made as the nominee, then the death benefit will be paid to that person and other legal heirs will not have a claim on the money)

Under nomination, the rights of the policyholder are not transferred. But, assignment is transfer of rights, interest and title of the policy to some other person (or) entity. To make assignment, consent of the insurer is also required.

Important Points

• Assignment of policies can be done even when a loan is not required or for some special purposes.
• If you assign the policy for other purpose other than taking a loan, the nomination stands cancelled.
• If the policy is assigned, then the assignee will receive the policy benefit. Death benefit will be paid to the Nominee, in case the policy is not assigned.
• The policy would be reassigned to you on the repayment of the loan (under conditional assignment) .
• Types of insurance policies used for assignment purpose to get business loans, generally include an endowment plan, money back policy or a ULIP. Home loan providers generally ask for the assignment of Term insurance plans on their names. (The term plan tenure should be more than the home loan tenure)
• An assignment of a life insurance policy once validly executed, cannot be cancelled or rendered in effectual by the assignor. The only way to cancel such assignment would be to get it re-assigned by the assignee in favor of the assignor.
• You can also raise a loan against your policy from your insurance company itself. In this case, your policy would have to be assigned to insurance company.
• An insurer may accept the assignment or decline. (The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policy-holder not later than thirty days from the date of the policy-holder giving notice of such transfer or assignment)
• In case of death of the absolute Assignee (to whom the policy rights have been transferred under absolute assignment) , the rights under the policy will be transferred to the legal heirs of the assignee.
• You can also assign a life insurance policy under Married Women’s Property Act . (At the time of making the application (buying a policy), a separate MWPA form has to be filled by the proposer for it to be covered under MWP Act. Do note that the existing life insurance policies cannot be assigned under MWP Act)
• Partial assignment or transfer of a policy can also be made. But banks will accept any of your life insurance policies as long as the sum assured is equal to or greater than the loan amount.

Hope you find this post informative and do share your comments.

(Image courtesy of Stuart Miles at FreeDigitalPhotos.net)

About The Author

Sreekanth Reddy

Can a LIC policy be assigned to someone not related by blood??

Dear Chowdhury, Yes, it is possible. However, Assignment is not permitted on all life insurance policies issued under How to buy Term Life Insurance under Married Women’s Property Act?

Very useful and gathered more knowledge

Hi, I got a question in CFP EXAM 5( case study paper) with regard to assignment of money back policy to a minor. I would like to know can a conditional assignment be made to a minor and if yes what about the premium that is yet to be paid? and would a guardian need to be appointed till the minor attains majority? and is it possible that an absolute assignment can be made?

Dear Dhaarini,

Where an assignment is made in favour of minor, the policy can not be dealt with during the minority of the assignee, even with consent of natural guardian or appointed guardian. This means minor assignee cannot raise loan, surrender or further assign the policy during his/her minority.

If the assignment is in favour of a minor, in the event of claim, policy money cannot be paid to him, as he cannot give valid discharge. It is therefore desirable that where the assignee is minor, testamentary guardian should be appointed in respect of all the properties of such minor including the policy moneys. The father i.e. natural guardian of the minor can only appoint the testamentary guardian. The appointment can be done by a separate instrument or on the back of the policy.

What if a wife has taken a policy in the name of his husband and put the nominee herself and also pays all the premiums herself, and now they are taking divorce. So, now can husband assign the policy to her and what benefits she can receive after assignment. Can she withdraw tha amount of the policy??

Dear Monika, Yes, he can make an Absolute assignment in the name of Wife..

Under Life Assurance one can assign a policy only if that policy is a policy of his/her own life. Here wife has taken a policy on her husband life and hence assignment does not arise. In the event of death of her husband she receives the death benefit irrespective of her relationship at the time of death. This is because under Life Assurance the Insurable Interest is required at the proposal stage and needs not be present at the claim stage.

I wanna give my policy to new owner

A assigned his policy to his brother B and B is paying premiums. A’s nominee is his father. What will happen if B dies?

Dear Mr Naidu, May I know what type of Assignment is this??

A assigned his policy to his brother B, out of love and affection as absolute assignment. Whose life is covered?. What happens if B dies?

Dear Mr Naidu, If the assignee (Mr B) dies, then his/her legal heirs will be entitled to the policy money. Kindly note that an assignee cannot make a nomination on the policy which is assigned to him.

“Absolute assignment is generally made for valuable consideration e.g. raising of loan from an individual / institution. This assignment has the effect of passing the title in the policy absolutely to the assignee and the policyholder in no way retains any interest in the policy. The absolute assignee can deal with the policy in any manner he likes and may even transfer his interest to another person or surrender the policy. Under absolute assignment when the assignee (Mr B) dies the benefits go to the legal heirs of the assignee and not to the heirs of the life assured.”

What is the procedure to get the policy assigned? How much time does it take?

Thanks for this. I always like to use study materials by Indians in preparing for my professional exams. The contents here are superb and easy to understand.

Once assignment is done, on whose name Renewal receipts and PPC will be generated.

Dear Gayu ..in the name of Policyholder only.

My colleagues were looking for USPS PS 1000 this month and were informed of an online platform that hosts a ton of fillable forms . If people are wanting USPS PS 1000 too , here’s https://goo.gl/Qqo6in .

Dear Sreekanth, I am having an LIC policy for the past 10 year. now i would like to assign the same to my mother. Now after the assignment, whose life is covered and who gets all the benefit? Do i have to appoint a new nominee after the assignment?

Dear Bhavik ..Life cover will be in your name only. Your mother can get the benefits. You can make her as the nominee.

If policy assigned to absolute assignment from A to B. B is the assignee of the policy and he have all rights of the policy. After assignment who will have a life cover A or B. Who will get the death benefits

Dear Senthil, Life cover – A. Beneficiary – B.

Thanks for this information, Let me know who will pay the remaining premium after assignment.and what are the other reasons for assignment except loan and gift. Manish

Dear Manish ..The policy holder only has to pay the premium.

I have a ULIP assigned to my home loan. I have paid two annual premiums till now. If I dont pay the next premium, will it have any impact on my home loan ? I know that my ulip will get discontinued in this case but can the bank force me to pay the premium legally ?

Dear Kalis, If sum assured falls below the outstanding loan amount then you banker may ask you to assign another policy or pay the premiums on this one.

Thanks. Sum assured is already below the loan amount. In this case, can bank take any legal action against me if I don’t pay the premium?

Dear Kalis..Why do you want to take this risk?

Who will have to pay tax if single premium ULIP where premium is >20% of sum assured is assgned to spouse & she then sureender it.

Dear Vishal ..The insured (policyholder)..

my father aged 72 has taken a ULIP policy on my Child with coverage 10 lakhs .But now he would like to Assign the policy to my mother’s Name aged 67.

Please Clarify weather the life coverage and policy benefits will be transferred to my Mother or will it continue with my son.

Dear Nisha, May I know who is the ‘insured’ in this policy? Is the child just a nominee to the policy? “If he assigns the policy for other purpose other than taking a loan, the nomination stands cancelled. If the policy is assigned, then the assignee will receive the policy benefit. “

Hi.. Really nice blog.very informative and useful. I liked the way You explained very briefly about Assignment’ of Life Insurance Policy.

Hi Srikanth,

Nice article on Assignment!

I Just wanted to know If i nominate my spouse for the life insurance or nominate my child and appoint my spouse how these to things are different in terms claim settlement of life insurance.

Ideally I may want my spouse to look-after my child education until they turn major and they do not misuse the claim amount.

Please let me know if possible your contact number so that we discuss further..

Please suggest.

Thanks, Shravan

Dear Shravan, If you are planning to buy a new Term plan, you can assign the policy under MWP Act by mentioning the Percentages (share in death benefits) among your legal heirs (spouse & kids). You also have the option to write a WILL and give detailed instructions about how the claim amount (if any, on such policy) should be used or allocated.

Dear Sreekant, Thanks for such valuable information. Please do correction on your post that the existing life insurance policies cannot be assigned under MWP Act. Pl correct me if I am wrong. Please let me know that even if I assign the policy unconditionally to the bank for home loan purpose, after repaying the home loan successfully, the bank should re-assign the policy to me. If it does not do this, what options do I have? Thanks again.

Dear Vivek, Yes, only new insurance policies can be assigned (while purchasing new ones) under MWP. I should have written the sentence as ‘You can also assign a new life insurance policy under….’ Thank you for pointing this out. (I have provided all the details about MWP act in another article).

If a policy is assigned with absolute assignment, it cannot be cancelled. It can be done only by another valid re-assignment. So, the banker has to re-assign it after the repayment of loan. When you do not wish to give away your complete control over policy, do not go in for absolute assignment.

thanks for prompt response.

ReLakhs.com is a blog on personal finances. The main aim of this blog is to help you make INFORMED financial decisions by presenting the content on money matters in a simple, unbiased and easy to understand manner.

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Deed of assignment

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About this document

Use this deed to assign (transfer) a policy for life insurance or an endowment to another person. The reason could be any, but it should be a sale in which money changes hands.

We include reasonable warranties by the seller and undertakings by the buyer. It is clear and simple, but thorough and complete for an arm’s length transaction.

The transfer will be complete and valid only when the insurer has been formally notified.

As well as the deed document, we have included a template notice that the assignment has taken place. This may or may not be useful to you: your insurer may prefer you to use their own form, but sometimes other parties, like your bank, also need to know or appreciate being told.

We offer a  simpler version  if you are a trustee assigning the policy to a beneficiary.

If you are making or receiving a transfer as part of a divorce or separation, use this alternative document .

Completing this deed

For technical legal reasons , all assignments of life policies must be by deed and not by contract.

The main practical difference is that a deed requires a witness to the signatures. Unless it is more convenient to do otherwise, the same witness can verify the signatures of both parties.

Taxation of life assurance policies is complex and we recommend that you consult with a tax accountant. The effect of tax is also an important consideration in assessing the value to the assignee of the policy.

When to use this document

The deed can be used to assign a policy:

• from one individual to another, for payment or as a gift
• in a sale by the life assured to anyone or any company

Features and contents

The deed includes the following paragraphs:

• Warranties by the assignor
• The assignment
• Dispute resolution
• Severance and invalidity
• Notice of assignment to deliver to the insurer or bank

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Assignment Of Life Policy – Certificate Of Title (2009 Edition)

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It has been brought to the attention of the Conveyancing Committee that some lending institutions have a requirement that solicitors attend to an assignment of life policy in connection with a residential mortgage loan. Solicitors will be aware from the form of undertaking in residential mortgage loan cases that paragraph 2(d) provides that the solicitor undertakes to have the lender’s standard form of life policy assignment executed by the borrower, if this is specified in the letter of offer, and provided that the standard form is furnished to the solicitor in the form in which it is to be signed prior to the drawdown of the loan.

The committee confirms that this means that solicitors are not required to insert the details of the policy in the assignment form and are merely required to attend to the execution of the life policy assignment itself. The attention of solicitors is directed to paragraph 15(a) and (b) of the Guidelines and Agreement (2009 Edition) agreed between the Law Society and the IBF in relation to residential mortgage loans, which confirms the position:

15(a) Some Lenders may furnish Borrower’s solicitors with deeds of assignment of life policy for execution at completion. Where this is done, the solicitor should ensure each relevant document is executed, witnessed and dated in order to comply with clause 2(d) of the Undertaking. (b) It is the responsibility of the Lender to furnish the Borrower’s solicitor prior to completion with the assignment of life policy in the form in which they wish to have it executed and with the relevant policy details inserted. Borrowers’ solicitors are not obliged to insert the details of the life policy in the schedule to the life policy assignment.

The committee further confirms that it has not been agreed with any lending institution that solicitors who attend to the execution of the life policy assignment will thereafter notify any life assurance company of the assignment itself. The committee believes that this is purely an administrative matter for a lending institution to attend to itself.

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• Practical Law

New: Deed of assignment

Practical law uk legal update 1-202-1081  (approx. 3 pages).

• The assignor is assigning the whole of the property demised by the lease.
• The property is not subject to any underlease(s).
• Where the assignee is paying a premium to the assignor or the assignor is paying a reverse premium to the assignee.
• Where the assignee gives an express indemnity covenant in respect of the rent and other obligations under the lease and/or in relation to matters contained in title documents affecting the property.
• Where the lease is being held over under the Landlord and Tenant Act 1954 and also where the assignor has commenced renewal proceedings.
• Where one party is paying, or making a contribution to, the legal (and surveyors') costs of the other.
• Considers in greater detail the various general issues affecting assignments of unregistered leases.
• Provides guidance on the legal, and drafting and negotiating, issues raised by each clause.

New Standard document and Drafting note

• Deed of assignment .
• Deed of assignment: drafting note .
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• Length: 6 pages (1100 words)

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this deed of assignment for a life insurance policy

Use this deed of assignment to transfer a life insurance policy to another person. The reason for transfer could be any, but it is a sale in that money changes hands.

The document includes reasonable warranties by the seller and undertakings by the buyer. It is clear and simple, but thorough and complete for an arm’s length transaction.

The transfer will be complete and valid only when the insurer has been formally notified. As well as the deed document, we have included a template notice that the assignment has taken place. This may or may not be useful to you: your insurer may prefer you to use their own form, but sometimes other parties, like your bank, also need to know or appreciate being told.

• We offer a simpler version of this document if you are a trustee assigning the policy to a beneficiary, use: Deed of assignment: life or endowment policy by trustees
• If you are making or receiving a transfer as part of a divorce or separation, use:  Deed of assignment: life or endowment policy on divorce .

Every document is straightforward to complete and written in plain English.

Completing this deed of assignment

For technical legal reasons, all assignments of life policies must be by deed and not by contract. The main practical difference is that a deed requires a witness to the signatures. Unless it is more convenient to do otherwise, the same witness can verify the signatures of both parties.

Taxation of life assurance policies is complex and we recommend that you consult with a tax accountant. The effect of tax is also an important consideration in assessing the value to the assignee of the policy.

When to use this deed of assignment

The deed can be used to assign a policy:.

• from one individual to another, for payment or as a gift;
• In a sale by the life assured to anyone or any company.

Document features and contents

The deed of assignment includes the following paragraphs:.

• Warranties by the assignor;
• The assignment;
• Dispute resolution;
• Severance and invalidity;
• Form: Notice of Assignment to deliver to the insurer and bank.

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Deed of assignment

Document Only

• Detailed guidance notes

Lawyer Assist

• Document with guidance notes
• Unlimited support by email
• Review of your edited document by a lawyer

Document overview

• Length: 5 pages (1140 words)

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this deed of assignment for a life insurance policy

Use this deed of assignment to transfer a life insurance policy to another person. The reason for transfer might be as a gift, as settlement of a divorce or on separation, or in return for a payment.

The transfer will be complete and valid only when the insurer has been formally notified. As well as the deed document, we have included a template notice that the assignment has taken place. This may or may not be useful to you: your insurer may prefer you to use their own form, but sometimes other parties, like your bank, also need to know or appreciate being told.

Additionally, if the reason for transfer is divorce or separation, this document includes undertakings and promises so that either party cannot fail to cooperate.

The document is straightforward to complete and written in plain English.

Completing this deed of assignment

For technical legal reasons, all assignments of life policies must be by deed and not by contract. The main practical difference is that a deed requires a witness to the signatures.

Unless it is more convenient to do otherwise, the same witness can verify the signatures of both parties.

When to use this deed of assignment

The deed can be used to assign a policy:.

• From one individual to another, for payment or as a gift
• In a sale by the life assured to anyone or any company
• To or by the trustees of a trust for any reason
• For a transfer to a former spouse or life partner
• Use in all provinces of Canada

Document features and contents

The deed of assignment includes the following paragraphs:.

• Warranties by the assignor
• The assignment
• Limitation of liability
• Publicity: allows you to decide whether any part of the deal can be made public
• Dispute resolution
• Severance and invalidity
• All other legal paragraphs
• Form: Notice of Assignment to deliver to the insurer and bank

Recent reviews

Choose the level of support you need.

• reporting on whether your changes comply with the law
• answering your questions about how to word a new clause or achieve an outcome
• checking that your use of defined terms is correct and consistent
• correcting spelling mistakes
• reformatting the document ready to sign

What other customers thought