Transfer by Endorsement
Definition - What does Transfer by Endorsement mean?
A transfer by endorsement refers to the legal transfer of a negotiable instrument from one party to another through the signing of a document. In the case of an insurance policy, the transfer can pertain to the proceeds of the policy and the endorsement can be a policy endorsement to be attached to that policy.
Insuranceopedia explains Transfer by Endorsement
Another example of a transfer by endorsement is a mortgage redemption insurance wherein part of the proceeds of the insurance of a borrower, equivalent to the outstanding loan with a bank, is transferred to the mortgagor-bank upon the insured's death. This transfer is evidenced by an endorsement in the insurance policy duly signed by the insured indicating the assignment of such amount to the said mortgagor bank in case of the death of the policyholder.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.