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.Contact the Insurer: Notify your insurance company of your intention to assign the policy. 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. Complete the collateral assignment form. On average this form takes 15 minutes to complete. Collateral assignment enables you to use your life insurance as collateral for a loan. Here is how it works.