Which term describes the rights of the policy owner, including naming and changing the beneficiary, receiving the policy's living benefits, selecting a benefit payment option, and assigning the policy?

Which term describes the rights of the policy owner, including naming and changing the beneficiary, receiving the policy's living benefits, selecting a benefit payment option, and assigning the policy?

• A. Beneficiary designation
• B. Policyholder
• C. Ownership
• D. Assignment

Answer: (C)

Ownership is the bundle of rights the policy owner has over the contract. It includes control over naming and changing the beneficiary, receiving any living benefits the policy may offer, choosing how the death benefit is paid, and transferring those rights to another person through assignment. Beneficiary designation only concerns who gets the death benefit, not the broader control the owner has. The term policyholder describes who owns the contract but doesn’t by itself spell out all these rights, while assignment is just the action of transferring ownership, not the full set of rights the owner holds.

Ownership is the bundle of rights the policy owner has over the contract. It includes control over naming and changing the beneficiary, receiving any living benefits the policy may offer, choosing how the death benefit is paid, and transferring those rights to another person through assignment. Beneficiary designation only concerns who gets the death benefit, not the broader control the owner has. The term policyholder describes who owns the contract but doesn’t by itself spell out all these rights, while assignment is just the action of transferring ownership, not the full set of rights the owner holds.