Deed of assignment: life insurance policy or endowment policy

About this deed of assignment for a life insurance policy

Use this deed of assignment to transfer a life insurance policy to another person. The reason for transfer could be any, but it is a sale in that money changes hands.

The document includes reasonable warranties by the seller and undertakings by the buyer. It is clear and simple, but thorough and complete for an arm’s length transaction.

The transfer will be complete and valid only when the insurer has been formally notified. As well as the deed document, we have included a template notice that the assignment has taken place. This may or may not be useful to you: your insurer may prefer you to use their own form, but sometimes other parties, like your bank, also need to know or appreciate being told.

We offer a simpler version of this document if you are a trustee assigning the policy to a beneficiary: Deed of assignment: life or endowment policy by trustees.

If you are making or receiving a transfer as part of a divorce or separation, use Assignment of policy on separation.

Every document is straightforward to complete and written in plain English.

Completing this deed of assignment

For technical legal reasons, all assignments of life policies must be by deed and not by contract. The main practical difference is that a deed requires a witness to the signatures. Unless it is more convenient to do otherwise, the same witness can verify the signatures of both parties.

Taxation of life assurance policies is complex and we recommend that you consult with a tax accountant. The effect of tax is also an important consideration in assessing the value to the assignee of the policy.

When to use this deed of assignment

The deed can be used to assign a policy:

• rom one individual to another, for payment or as a gift;
• In a sale by the life assured to anyone or any company.

Document features and contents

The deed of assignment includes the following paragraphs:

• Warranties by the assignor;
• The assignment;
• Dispute resolution;
• Severance and invalidity;
• Form: Notice of Assignment to deliver to the insurer and bank.