Under which conditions can assignment of life insurance policies occur without issues?

The assignment of life insurance policies can occur smoothly as long as the identity of the life insured remains unchanged. This is because life insurance contracts are personal in nature, and the benefits are tied to the specific individual insured. When a policyholder assigns their policy to another party without changing the insured individual, the obligation of the insurer remains intact, and the original terms of the policy still apply.

In contrast, if the identity of the insured were to change, this could lead to complications regarding premium payments, underwriting considerations, and the insurer's coverage obligations, potentially invalidating the assignment. Therefore, maintaining the original insured's identity is crucial for ensuring that the assignment is recognized and upheld by the insurer without dispute.