Question

As a young man, T purchased a policy naming his parents as a beneficiary. As T got older and was a very successful business person with his own family, he wanted to protect his estate by transferring ownership of a policy to a living trust. Which of T's ownership rights under a life policy would allow him to do such an action?

A. Risk Classification
B. Policy holder
C. Accelerated Benefit Rider
D. Absolute Assignment

Answer 1

Absolute Assignment is the ownership right that would allow T to transfer ownership of a life insurance policy to a living trust.

Step-by-step explanation:

The ownership right that would allow T to transfer ownership of a life insurance policy to a living trust is Absolute Assignment. Absolute Assignment is the complete transfer of ownership rights of the policy from one party to another. In this case, T can transfer ownership of the policy to the living trust, which would then become the new policy holder.