What is the term for the transfer of some or all ownership rights of a life insurance policy from one individual to another?

The correct term for the transfer of some or all ownership rights of a life insurance policy from one individual to another is "Assignment." In the context of life insurance, assignment allows the current policyholder to transfer their rights to another party, which can include the ability to make changes to the policy, access cash values, and receive the death benefit. This process is commonly used for various reasons, such as when a policyholder wants to secure a loan using the policy as collateral or when they want another individual to take control of the policy for personal or financial planning purposes.

Understanding assignments is important for both policyholders and beneficiaries, as it directly affects who has authority over the policy and the benefits derived from it. It’s critical that the assignment is documented properly and may require notifying the insurance company to ensure that all parties are aware of the change in ownership rights.