How many types of assignment are there?
There are 2 types of assignment:
- Absolute Assignment
- Collateral Assignment
What is an Absolute Assignment?
It is a transfer of ownership from the Policy Owner (Assignor) to another person or institution such as a bank (Assignee). The Assignee will have full control of the policy as if he / she is the Policy Owner.
What is a Collateral Assignment?
Collateral Assignment is the transfer of ownership rights from the Policy Owner (borrower) to an Assignee (lender), in exchange for the granting of credit facilities. The borrower retains possession of the asset, with the understanding that the use or disposition of that asset must be managed with the consent and approval of the lender.
Any payout or claims will be made to the lender and the lender will liaise with the borrower and / or his / her beneficiary if there is excess money. Once the loan is fully repaid, the lender relinquishes the Collateral Assignment, and the borrower has full ownership and control of the insurance plan once again.
Am I eligible to perform an Assignment?
You must be 18 years of age, of sound mind and have not been declared a bankrupt in order to perform an Assignment.
What are the requirements for performing an Assignment?
To assign the policy to an individual, please complete the following:
- Absolute Assignment Form
- Copies of NRIC for both the Assignor & Assignee
- Individual Tax Residency Self Certification form (if Assignee is an individual)
- Entity Tax Residency Self-Certification form (if Assignee is a Company / Organisation / Trust)