Assignment of Life Insurance Policy as Collateral
Transfer a life insurance policy to a lender as collateral for a loan with this Assignment of Life Insurance Policy form.
Life insurance can be used as a financial asset during your lifetime. If the policy allows for it, the insurance can be used as collateral for a loan, which gives the lender a claim against the policy's cash value if the borrower defaults in repayment.
Assignee's (Lender's) Rights
The assignee (lender) has the sole right to collect any proceeds payable under the policy. The assignee is also at liberty to surrender the policy and receive any distributions, dividends or surplus.
Assignor's (Borrower's) Rights
The assignor (borrower) retains the right to collect disability benefits, designate or change beneficiaries, and elect for optional settlement.
Format and Legal Applicability
The Assignment of Life Insurance Policy form is a generic legal template in MS Word format. It makes no specific references to the laws of any country and can be used almost anywhere.
Establishing an Offshore Structure for Canadians
This in-depth article describes a variety of offshore structures available to residents of Canada, for the purpose of asset protection. In particular, opportunities in the Bahamas are discussed.
The article provides a variety of information, including:
- a summary of how each structure is established,
- the purposes, advantages and disadvantages of each type of structure,
- international business corporations,
- settlement trusts,
- international foundations,
- universal life insurance,
- international deferred compensation programs,
- income stabilization plans,
- individual and corporate funding methods.
Establishing an Offshore Structure for Canadians is intended for residents of Canada, and is provided in Adobe PDF format.
Will Clause re Insurance Proceeds | Canada
Add this clause to a Will made in Canada to direct how life insurance proceeds are to be distributed.
- The testator (person making the Will) declares that the proceeds of life insurance policies, except for RRSPs, are to form part of the estate and be paid to the beneficiaries as such.
- This clause is intended to be considered a declaration within the meaning of the Insurance Act (Canada).
- This Canada Will Clause re Insurance Proceeds is a downloadable form in MS Word format.
