Collateral Assignment Of Life Insurance Form

The forms can be signed at the time of application or after the policy is issued.

Collateral assignment of life insurance form. Definition of collateral assignment. A collateral assignment is the assignment of a policy to a creditor as security for a dept. Assignment of contract as collateral form only usaa form is acceptable page 1 part a information required on collateral assignment form. Under a collateral assignment the creditor will receive the monthly assigned in the event of a disability.

Usaa member number of the named insured. When you fill out a collateral assignment form that assignment supersedes your beneficiaries rights to the death benefit. Named insured on the contract being assigned. In the event of your death the life insurance company will pay the lender or assignee the loan balance.

The company shown above is solely. The general distributor for variable products is nationwide investment services corporation nisc member finra columbus ohio. Collateral assignment use when assigning policy proceeds to cover a loan i e. Specify who the assignment is going to be made to and their address.

Aig in this form the company refers to the insurance company whose name is checked above. Definition of collateral assignment. The collateral assignment is a simple form that needs to be filled out and signed by all parties involved. A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan.

Life and annuity products are issued by nationwide life insurance company or nationwide life and annuity insurance company columbus ohio. Contract number to be assigned. Collateral assignment american general life insurance company the united states life insurance company in the city of new york a member of american international group inc. If the borrower is unable to.

A collateral assignment of a life insurance policy notifies the borrower s insurance company the borrower has assigned an interest in her life insurance policy to the lender. The lender the insured and the owner and payer if different than the insured. Under a collateral assignment the creditor is entitled to be reimbursed out of policy proceeds for the amount. The nationwide retirement institute is a division of nisc.

The remainder of your death benefit if there is one will go to your beneficiaries.