The Assignment of Life Insurance Policy as Collateral is notification to, and acknowledgement from, the issuer of the life insurance policy that the policy is being pledged as collateral on a loan.
This documentation is required when the loan is secured by:
- Premium (death benefit) value of a life insurance policy
- Cash Surrender value of a life insurance policy
- Single Payment Annuity
The following should be mailed to the life insurance company:
- Original and one copy of the Assignment of Life Insurance Policy
- Signed by borrower
- Signed by beneficiary
- Original and one copy of the Life Insurance Assignment Questionnaire
DO NOT FUND until:
- Receipt of Assignment of Life Insurance Policy executed by life insurance company
- Receipt of Life Insurance Policy Questionnaire executed by life insurance company
- OR you have documentation from life insurance company acknowledging bank’s lien on benefits
Consequences:
Without a signed and acknowledged Collateral Assignment of Life Insurance Policy, and an acknowledged Life Insurance Policy Questionnaire, the loan is considered unsecured.
Once completed, the Assignment of Life Insurance Policy as Collateral document is uploaded to Synergy (consumer purpose) or Abrigo (business purpose).
If you need additional assistance with Abrigo, please contact _Abrigo Help.
After loan has closed: Original Policy, Assignment of Life Insurance Policy as Collateral, and Collateral Receipt are to be sent to Loan Servicing in the secure locked bluebag.