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Collateral Assignment Explained — How Your Life Insurance Secures a Loan
Your life insurance policy can be used as collateral for a loan — and the bank gets paid first if you die before it's repaid 💡 Collateral assignment is a temporary, partial transfer of your policy rights to a lender. Once the loan is paid off, full control goes back to you. It's not the same as absolute assignment — and confusing the two ...
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