When setting up collateral assignment of life insurance, it is very important to remember that the lender should never be named as beneficiary on the policy. (rootfin.com)
You would need to sign a loan collateral assignment form to specify the bank would receive the life insurance death benefit. (lifewealthwin.com)
It is important that the primary insured and also the borrower get a life insurance policy and use collateral assignment and transfer the portion of the life insurance to the lender or bank. (lifeinsuranceblog.net)