Transferable Insurance Policy
Definition
- A life insurance policy that gives the policyholder the option to sell the policy to a third party. A transferable insurance policy can be used in a viatical settlement, life settlement, or spin-life arrangement whereby a life insurance policyholder makes a third party the beneficiary of the death benefit in exchange for a payment or series of payments larger than the life insurance policy's cash surrender value.
Synonyms
movable insurance policy
Related Terms and Acronyms
- Assignee — Definition,
- A person appointed to acquire (take) an item, such as a property.
- In the insurance industry, an assignee is someone who is assigned ownership of another person's insurance policy.
- Assignor — Definition,
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Life Insurance — Definition, Very Important,
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
➥ CanEquity offers life insurance. - Loss Payee — Definition,
- An entity that is legally entitled to the benefits of an insurance claim.
- Policy Loan — Definition,
- A loan where a life insurance policyholder's death benefit is used as collateral.
- Revocable Beneficiary — Definition,
- A beneficiary whose benefit can be modified without his or her consent.
- Spin-Life — Definition,
- A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
- Stranger Originated Life Insurance (STOLI) — Acronym,
- A life insurance policy purchased by someone without any insurable interests with the insured person.
➥ Illegal in many Canadian provinces.
