Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Assuming the beneficiary designation is revocable, which right generally belongs to the policyowner of a life insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The policyowner holds all the rights under a life insurance policy, including the right to name and change a revocable beneficiary, assign or transfer the policy, borrow against the cash value, surrender the policy, and select settlement options. When a beneficiary is irrevocable, the owner's right to change the designation is lost without the beneficiary's consent. The insured and the insurer have their own separate rights.
Why the other options are wrong
- B) Consent is required only when the beneficiary is irrevocable; a revocable designation may be changed freely.
- C) The policyowner cannot impose medical exams on the insured; that is an insurer underwriting function.
- D) Premium rates are set by the insurer's actuarial process, not by the policyowner.
Memory hook
The policyowner is the boss of the policy: name the beneficiary, move the cash, assign the rights - unless the beneficiary is irrevocable.