Before diving into the mechanics of the form, it is important to understand the parties involved. The form is used when the Assignor (the bank or lender to whom the policy was pledged) wishes to transfer the policy back to the Assignee (the original policyholder). In the context of Form 3857, the terminology can be slightly confusing, as the "Assignor" is the current holder (the bank), and the "Assignee" is the person receiving the rights back (the policyholder).
Life insurance is often a cornerstone of financial planning, providing a safety net for families and serving as a valuable financial asset. In certain financial transactions, such as securing a bank loan, a Life Insurance Corporation (LIC) policy is assigned to the lender as collateral. This process is known as assignment. Once the loan is repaid and the obligation is fulfilled, the policy must be transferred back to the original policyholder. This reverse transfer is known as "Reassignment." how to fill lic reassignment form 3857
: At least one witness must sign and provide their name, occupation, and full address. Before diving into the mechanics of the form,
: The actual bond must be submitted to record the reassignment. Life insurance is often a cornerstone of financial
In the repaid to us by field, enter the Full Name of the Original Policyholder .
: The Assignee (bank/institution) enters their name and the total sum of money (consideration) they received to release the policy.