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

In the context of a life insurance policy, the policyholder typically holds the right to change the beneficiary. The policyholder is the individual who owns the policy and has the authority to make decisions regarding it, including naming or changing the beneficiary who will receive the death benefit upon the death of the insured.

Policyholders may exercise this right at any time, as long as the policy is in force and they are not restricted by any legal requirements or terms outlined in the policy. This flexibility allows policyholders to adapt to their changing life circumstances, such as marriage, divorce, or the birth of a child, and ensures that their wishes regarding the distribution of benefits are honored after their passing.

In contrast, the insurance company does not have the authority to unilaterally change beneficiaries; this remains strictly the policyholder's decision. The beneficiary cannot change their own status because they are only entitled to receive benefits; they do not own the policy. The insured, being the person whose life is covered by the policy, also does not have the authority to change the beneficiary unless they are also the policyholder. Thus, the policyholder retains control over beneficiary designations, which is essential for effective estate planning and managing financial intentions.