Life Insurance Pledge

Does anyone have a sample of a Pledge Agreement that can be used for pledging a life insurance policy as collateral on a personal loan? This is the first time we have allowed this type of collateral pledge. Thank you.

Normally, you have to contact the specific insurance company and get a copy of the form they use for the assignment of the policy and fill it out and have the customer sign the assignment document with proper notarization. You submit the document to the insurance company and you don't do anything until you get confirmation that they accepted the assignment. Some policies can be assigned and some cannot. I pledge agreement from the customer buys you nothing.

Randy -
We are doing one of these and the assignment contains nothing from the insurer (i.e., they don't acknowledge that there are no other prior pledges of the same policy.) All they say is that they will "record" the assignment and send us an acknowledgment that they have so recorded the assignment.
Is this normal?

This is a whole life policy? Maybe they do them a little different in today's world?

This would be level term life insurance.

As collateral? I'm not an insurance expert, but doesn't your borrower have to die for you to collect on this collateral and there is no cash value?

Tony Soprano is dead you know.

To collect on a term policy, wouldn't the Bank need to be listed as beneficiary?