Remember the basic premise of each of the two assignment provisions - absolute and collateral. If the policy is transferred to another person under an absolute assignment, the transfer is irrevocable, which means it cannot be changed.
If the policy is transferred as a means of establishing security on a debt - for instance, a home or a car - it is considered a collateral assignment. This means that if the insured dies before the debt is repaid, the balance of the debt is paid to that creditor out of the policy proceeds. If there is any of the money left out of the policy proceeds, the balance would then be paid to the beneficiary.