How must an assignment of a life insurance policy be completed to be effective?

For an assignment of a life insurance policy to be effective, it must typically be filed with the insurance company. This is essential because the insurance company needs to be aware of any changes in the policy ownership or beneficiary designations. By having the assignment documented and formally submitted, it ensures that all parties are informed and that there is a record of the assignment on file. This process helps to avoid potential disputes regarding the policy in the future and confirms the assignor’s intent to transfer rights under the policy.

While other methods of communication, such as oral assignments, might convey intent, they lack the formal recognition required to be binding. Similarly, notarization and witness requirements can vary by state and may not be universally necessary for an effective assignment. The timeline for completion following issuance is not a typical requirement for assignments, as life insurance policies often allow for assignments to be made at any point during the policy's life.

Thus, the most reliable method to ensure the assignment is effective and recognized by all relevant parties is to have it filed directly with the insurance company.