Which right of policy ownership allows a policyholder to change beneficiaries?

The right of policy ownership that allows a policyholder to change beneficiaries is fundamentally tied to the concept of the rights granted to them as the owner of the policy. Within the framework of life insurance policies, the policyholder has specific rights, one of which is the ability to designate and change beneficiaries. This means that as the policyholder, you retain control over who will receive the death benefit upon your passing, which is a crucial aspect of managing your insurance coverage effectively.

The other options presented do not relate specifically to the ability to change beneficiaries. For instance, the free-look provision allows a policyholder to review their policy for a certain period and cancel it without penalty, while the incontestable clause gives the insurer the right to void the policy for misrepresentation only within a certain period. The suicide provision, on the other hand, outlines conditions under which the insurer will not pay the death benefit if the policyholder commits suicide within a specified time frame after purchasing the policy.

Thus, the rights of policy ownership encompass not only the option to change beneficiaries but also various other rights that empower policyholders to manage their insurance policies according to their needs.