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What is absolute assignment?

An absolute assignment transfers the ownership of a life insurance policy, with all its rights, to someone else. It is how a policy is sold in Singapore. The life assured stays the same person; only the owner changes.

Last reviewed 15 October 2026

In short

The assignor, who owns the policy today, transfers it to the assignee, who becomes the new owner.
The insurer must receive written notice, and records the new owner.
After the assignment, the payouts, including the death benefit, go to the new owner.
Not every policy can be assigned: trust nominations, pledges and some product terms stand in the way.

Who is who, before and after

How an absolute assignment changes a policy when you sell it to us.

Role	Before the sale	After the sale
Policyowner	You, the assignor	Us, the assignee
Life assured	Unchanged	Unchanged
Premiums still due	Paid by you	Paid by us
Maturity payout	Paid to you	Paid to us
Death benefit	Paid to you, your estate or your nominee	Paid to us
Revocable nomination	In place	Generally ends; confirm with the insurer

The law behind it

Singapore's Policies of Assurance Act 1867 sets out how life policies are assigned. Section 5 deals with the form of an assignment: an endorsement on the policy, or a separate document. Section 3 deals with written notice to the insurer, and lets an assignee who has given notice sue for the policy money in its own name.

Nominations are governed separately, under the Insurance Act 1966. A revocable nomination generally ends when the policy is assigned, while a trust nomination usually means the trustees must agree before anything can happen.

This is general information, not legal advice. Whether a particular transfer works depends on the law, the insurer's rules and the policy itself. Read the Policies of Assurance Act 1867

Absolute and conditional assignment

Absolute assignment

A permanent transfer of the whole policy. This is what a sale uses: the new owner holds every right and pays any remaining premiums.

Conditional assignment

A transfer that falls away once a condition is met, such as a policy pledged as security for a loan and released when the loan is repaid. A policy assigned this way usually cannot be sold until it is released.

How an assignment is done

You accept our written offer, which names the price and every condition.
You sign an absolute assignment in the form your insurer accepts: its own form, or a separate deed.
Written notice of the assignment goes to your insurer.
The insurer records us as the new owner.
We pay you into an account in your own name.

How selling works, step by step · What happens after you sell

Warning signs

Never sign a blank or incomplete assignment form.
Never pay anyone a fee to release your money.
Know exactly who the assignee is: its full company name and UEN.
Check the policyowner and the life assured on your documents; they are not always the same person.
Confirm directly with your insurer, using a number from its own website, that it has recorded the assignment.
Keep copies of everything you sign.

Assignment questions

Does the life assured change?

No. Only the owner changes. The policy still covers the same person's life.

Is assignment the same as surrender?

No. Surrender ends the policy with the insurer. Assignment keeps it alive under a new owner.

Does the insurer have to agree?

The insurer must receive written notice and records the new owner. A few products restrict assignment, so we check this before making an offer.

Can I assign a policy with a loan on it?

Often, yes. The loan stays with the policy, and our price reflects it.

Can I undo an assignment?

Not on your own. Once recorded, only the new owner can transfer the policy again.

Where are the assignment forms?

Each insurer has its own. We provide the right one for your insurer when you accept our offer. Assignment forms by insurer

Sources

Thinking of assigning your policy to us?

Check whether we would buy it first. No NRIC, no obligation.

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