Which term describes the transfer of rights to the proceeds of an insurance policy to the funeral provider?

• A. Beneficiary Designation
• B. Proceeds Assignment
• C. Assignment of Proceeds
• D. Proceeds Transfer

Answer: (C)

Transferring rights to the policy’s money to the funeral provider is called an Assignment of Proceeds. This formal mechanism lets the policy owner designate that the life insurance benefit, or a portion of it, will go directly to the funeral home to cover burial expenses. It’s about who can claim the proceeds and who receives them, not just who is named to receive the money overall. Beneficiary designation focuses on the ultimate recipient of the funds, not on transferring the right to collect to another party. The other terms are either less precise or not the standard wording used to describe this specific transfer of rights to the proceeds.