Under what circumstance can a life insurance policy be "assigned"?

A life insurance policy can be assigned when the policyholder transfers rights and benefits to another party. This process is commonly known as an "assignment" and it allows the original policyholder to transfer ownership of the policy and its benefits to someone else, often for purposes such as securing a loan or providing benefits to a family member. The new owner, known as the assignee, obtains the authority to make decisions regarding the policy, receive policy benefits, and handle other policy-related matters.

The other scenarios do not align with the concept of assignment. For instance, canceling a policy involves terminating it rather than transferring rights. Changing premiums is a modification of the policy terms but does not involve transferring ownership or rights. Lastly, the age of the insured does not impact the assignment of a policy; assignments are based on the actions and intentions of the policyholder, not the insured’s age. Understanding how assignments work is crucial for managing life insurance effectively and ensuring that policy benefits are directed according to the wishes of the policyholder.