Cession

A transfer of the assured's interest or ownership to a third party. When you transfer the ownership, you cede the policy to somebody, the cessionary. You must remember that although the cessionary becomes the owner of the policy, you remain the life assured, i.e. the person who has to die, or live till maturity, before the proceeds become payable. A cession overrides the appointment of a beneficiary, so that if you die (or survive to maturity), and the cession is still in force, the cessionary is entitled to the proceeds of the policy.