Who has the right to change a beneficiary designation in a life insurance policy?

In a life insurance policy, the right to change the beneficiary designation resides with the policy owner. The policy owner is typically the person who has taken out the insurance policy and holds the legal rights associated with it. This includes the ability to designate and change the beneficiary or beneficiaries who will receive the death benefit upon the insured’s passing.

This power to change beneficiaries allows the policy owner to adjust to life changes, such as marriage, divorce, the birth of a child, or the death of a previously named beneficiary. It is an essential aspect of policy ownership, as it provides flexibility in planning for the financial security of those left behind.

In contrast, the insurance company does not have the authority to change the beneficiary; it is bound to follow the instructions of the policy owner as stated in the contract. A beneficiary cannot change their designation since they are typically the recipient rather than the owner of the policy, and the insured individual, while they may be related to the policy, typically does not have the authority to make changes unless they also hold the ownership rights. Thus, the correct answer highlights the policy owner's unique role and authority regarding beneficiary designations.