Insurance companies advise against assigning the benefits of the life insurance policy and the question is whether or not that’s for their benefit or for your benefit. Well, the assignment is usually you’re assigning it to someone to pay a bill or for some reason why you’re assigning it or you’re selling that benefit. And so if you’re selling it to somebody, well that means they’re making a profit. So I believe that the advice not to assign the benefits under the life insurance policy or any insurance policy is probably a pretty good idea not to do that unless you consult with an attorney as to why you’re doing it and if you have any other choices. I see that it is probably a pretty good idea to assign life insurance benefit to a funeral home, however, to pay for a funeral. If you do not have the necessary funds to pay to have someone buried and you were left to be the beneficiary and you want your loved one to be buried, well I think that’s a pretty good assignment. And then you can always see about recovering the cost of the funeral if there’s an estate proceeding.
So if there are other circumstances wherein you’re assigning the life insurance policy, you need to probably consult with an attorney as far as why you’re doing it and whether or not it’s advisable. I’m not sure why the life insurance companies or the insurance companies tell you not to assign it, but I think that that’s pretty good advice until you talk to an attorney to determine whether that’s in your best interest or whether or not you have any choices in the matter. If you have any questions about that, give me a call at 727-847-2288.