Life insurance policy owners are allowed to assign (i.e., give or sell) the policy to another person or institution. An insured may take this action for several reasons. One of the most common reasons is to secure a loan from a bank or other financial institution. After the assignment, if the insured dies, the debt to the bank is repaid and if there is any money left over, it is given to the insured’s beneficiary.Another reason to assign a policy is to sell the policy in order to receive immediate cash. The new owner can then change the beneficiary and receive the death proceeds (see Viatical Settlements).