How to Transfer Ownership of a Life Insurance Policy

When a person takes out a life insurance policy, he must fill out a life insurance application.

The application asks the applicant to name the policyowner, insured and beneficiary. In many cases, the insured is the policyowner. Sometimes, however, they are two different individuals.

A policyowner may also be a trust with the designated trustee. An application for life insurance has a special section where an applicant must indicate the person who will be responsible for paying premiums and the billing address.

If an insured is not a policyowner, he may or may not be responsible for paying premiums. However, if the insured assumes the responsibility for paying premiums, the insurance company will send premium-due notices to the insured.

Every life insurance policy outlines the rights and obligations of a policyowner. In a typical insurance contract, “you” means “policyowner”. For example, if a contract states, “You have the right to change beneficiaries”, it refers to the policyowner’s right to change beneficiaries.

A policyowner is the person who is granted many rights by the insurance contract that he can exercise during the lifetime of the insured. One of such rights is the right to change a policyowner. Usually, the ownership arrangement in effect on the contract date will remain in effect unless the policyowner asks the insurance company to change it.

The policyowner may change the ownership of the contract by sending the insurance company a request on a special form. When the proper form is completed and sent to the insurance company, the insurance company will file and record the ownership change and it will take effect as of the date the policyowner signed the request.

While the insured is living, the owner alone is entitled to any contract benefit and value, and to the exercise of any right and privilege granted by the contract or by the insurance company.

When a policyowner is changed, it is important to inform the insurance company of the new address. It is also important to determine who should pay premiums. If the insured is an individual different from the new policyowner and the insured has been paying premiums, the insurance company must be put on notice that the new policyowner would be paying premiums.

If proper notice is not given to the insurance company, it may result in the insurance company sending premium-due notices to the wrong address. It may lead to unpaid premiums and an eventual policy lapse.

A life insurance claim denied due to lapse following change in ownership may be reversed with the help of an experienced life insurance attorney. At our firm, our life insurance lawyers focus on recovering denied life insurance claims and collecting lapsed policies.

If your life insurance claim has been denied and you would like to discuss the life insurance claim denial with an experienced life insurance attorney, call us now for a free consultation at (888) 510-2212. No fee until we win your case. Competitive contingent fees.

Call (888) 510-2212 for a free consultation.

Picture of About the author

About the author

Attorney Tatiana Kadetskaya has over 10 years of experience in life insurance law representing beneficiaries and policy owners. She is best known for successfully collecting denied and delayed claims and settling complex beneficiary disputes and interpleader lawsuits.

Contact us