A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a. Through assignment of life insurance, American Funeral Financial, LLC, assists funeral homes and cemeteries by taking the burden of collection off your shoulders. Collateral Assignment of a Life Insurance Policy. By Brad Cummins on Monday, 23 July 2012. Posted in Whole Life 101. Life Insurance and Collateral Assignment Choosing your Life Insurance Policy What is life insurance? Do you need life insurance? How much life insurance is enough? A collateral assignment of life insurance is a contract that assigns a life insurance policy death benefit to the Lender as collateral for a loan. Welcome to We Fund Funerals. Let us help YOU eliminate the hassle, headache, and delays that happen when processing a life insurance death claim. Same DAY funding at. Some insurance companies use an “ownership clause” to. notice must be given to the life insurance company that the assignment has been. Sheldon Fishman. An assignment is irrevocable, and cannot be changed later. DO NOT USE THIS FORM if you only wish to designate a beneficiary to receive your life insurance. Colonial Penn Life Insurance offers affordable life insurance coverage online, including guaranteed acceptance life, term life, and permanent, whole life insurance. What Is a Life Insurance Assignment?. Life insurance policies, particularly permanent products with accumulated cash value, can be used as leverage to gain approval.