The word absolute assignment itself tells the meaning for it and is an type of assignment done without any terms and conditions. Which means the policy once assigned here transfers full rights to the assignee.
The following are the key features of an absolute assignment.
- This type of assignment doesn’t require any particular reasons for the assignment.
- There is no conditions required to fulfill.
- Absolute assignment can be done in favour of any person or an private entity.
- The reason for the assignment may be anything.
- No particular reason for assignment
- The assignor doesn’t have any rights on the policy after assignment.
- All the rights and benefits from the policy can be enjoyed only by the assignee.
- Absolute means every thing.
- Normally these kind of assignments happen in employer employee policies. Here the policy is taken be the employer and is assigned to the employee without any default conditions.
This assignment makes all the nominations done before as void. The only thing an assignor can do is to pay premiums only. Even the fund switching, mode change and all the policy related services are to be done only by the assignee.
You have to choose carefully and think twice assigning a policy. You have the flexibility here to choose between the two type of assignment.
This type of assignment is very common when a company proposes policy on its employees.