If Tom wants to borrow money from the bank using part of his life insurance cash values as collateral, what type of assignment will secure this loan?

Question

Quizplus · Accepted Answer

If Tom wants to borrow money from the bank using his life insurance cash values as collateral he will probably use a partial assignment. The partial assignment term is used because the collateral being assigned only represents part of the proceeds. When an individual borrows money, the partial assignment means that should the individual die before loan repayment is complete, part of the life insurance proceeds will be paid to the assignee to cover the loan amount. The remaining proceeds will be paid to the beneficiary.

If Tom Wants to Borrow Money from the Bank Using