Step 1 - Print and Complete Form. The absolute assignment of a life insurance certificate has legal and tax implications.A collateral assignment is a legal arrangement where the policyholder assigns the benefits of their policy to a lender as collateral for a loan. Please read instructions on Page 4 before completing and executing this form. SECTION 1: Group life insurance program. The application for life insurance benefits consists of the forms included in this packet, as well as the additional information noted under item 1 below. Once you have found the right loan, you must fill out the collateral assignment form. Your insurer will be able to provide you with this form easily. Complete, print, and sign this Assignment of benefits form (highlighted fields can be completed online then printed).