Explore commonly used personal finance terms.
Absolute assignment is the complete transfer of ownership rights from one party to another, often used in life insurance policies where the policyholder transfers all rights to a third party, such as a lender. This transfer is permanent and gives the assignee full control over the policy, including beneficiary designations and claim rights. Absolute assignment is common in loan agreements where the policy is collateral, helping lenders secure their interests while providing borrowers access to insurance-based financing.
