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Life Insurance Assignment Clause
(redirected from Life Insurance Assignment Clauses)

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Life Insurance Assignment Clause
A clause in a life insurance contract allowing the policyholder to give or sell the right to receive the death benefit or other benefits to another party. A common example of life insurance assignment occurs when a bank accepts a life insurance policy as collateral for a loan. In this circumstance, if the policyholder dies before the loan is repaid, the bank becomes the beneficiary.
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