What does the assignment provision allow policyholders to do?

The assignment provision in an insurance policy allows policyholders to transfer ownership of the policy to another individual or entity. This means that the new owner assumes all rights, privileges, and responsibilities associated with the policy, including the right to make changes, access benefits, and control any assignments or claims. It is essential for policyholders to understand this provision because it provides flexibility in managing their policies, whether it's for estate planning purposes, financial needs, or personal circumstances.

The ability to transfer ownership can be beneficial in various situations, such as when the original policyholder wishes to gift the policy to someone else, include it in a trust, or accommodate changes in their personal life circumstances. The assignment effectively allows the policyholder to make their life insurance or annuity more adaptable to their needs and the needs of their beneficiaries.