How works the pledging a life insurance contract in the context of operations on the contract

Assignment of debt

Assignment of debt-mobile
Assignment of debt-tablet
Assignment of debt

Collateral / Pledge


How works the pledge in the context of a surrender request from the policyholder.

A life insurance policy can be pledged by the policyholder. It’s an agreement between the policyholder, the creditor (bank) and the life insurance company, whereby the life insurance contract is used as guarantee in exchange for a financial loan.
There are different types of collateral, the most common ones – assignment of debt and pledge - are described below.

When a life insurance contract has been pledged, the policyholder can no longer act freely during management acts such as a switch or a surrender. He must request prior authorisation to the creditor (banking institution).

surrender request from policyholder-mobile
surrender request from policyholder-tablet
surrender request from policyholder
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The contents of this theme
Reading time: 5 mn

Assignments of debt and pledges

What are the differences and similarities between an assignment of debt and a pledge of a life insurance policy?
Reading time: 5 mn

Pledges on life insurance policies: a game worth betting on

The new role of banks in Italy in the case of pledge of a life insurance policy.
Reading time: < 7 min

Pledges of insurance policies

Pledging possibilities of the life insurance contract according to the country of residence.
Pledged life insurance policy and transaction request: how does it work?

When a life insurance contract is pledged to a credit institution, whether as part of a delegated claim, a pledge or a collateral, it is no longer possible to make changes to the contract freely. Indeed, the policyholder must first request the creditor's authorisation if he wishes to make a surrender on his life insurance policy.