Multiple choice

A policy taken with critical illness rider benefit is being assigned. Which type of assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim?

  1. Absolute assignment

  2. Conditional assignment

  3. Loan assignment

  4. Collateral assignment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Conditional assignment would suit the intended purpose because conditional assignment provides that the policy shall revert back to the life assured on his or her surviving the date of maturity or on death of the assignee.

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