Pledge of
Life Insurance
______________,
referred to as DEBTOR, and __________, referred to as CREDITOR, agree:
______________ is
indebted to CREDITOR in the amount of $______
(_____________________&___/100 dollars) by the terms of the agreement
named _________________, dated
____________. DEBTOR assigns to CREDITOR the following policy of life insurance:
Policy number:
__________________________________________________
Face amount:
$___________(_______________________&____/100 dollars)
Amount of loans/charges
against policy: $___________(_____________ __________&____/100 dollars) as
collateral for the debt.
Any and all proceeds
from the policy are assigned to the CREDITOR, to the extent of principal and
interest due upon the debt, and any renewals and extensions thereof. The DEBTOR
shall prepare any further instruments required to effect this pledge. Any proceeds that exceed the above
obligations shall be immediately turned over to the Estate of Debtor.
Dated:
_________________________
______________________________________________
Debtor
_____________________________________________
Creditor
Pledge of Life
Insurance
Review List
This review list is provided to inform you about this
document in question and assist you in its preparation. The Pledge of Life Insurance proceeds is
similar to that for the Pledge of Stock assets.
See the notes under the Pledge of Stock document for advice and counsel
on this subject. This suggestion is made
to be sure you understand there are no material differences between the effect
of these pledges other than you can not “sell” an insurance pledge as you can a
stock asset.
- Make multiple copies. Be sure each relevant party has a copy.
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