When choosing a beneficiary for a life insurance policy, who has the authority to do so?

The authority to choose a beneficiary for a life insurance policy resides with the policyowner. The policyowner is the individual who holds the insurance contract and has the rights to make decisions regarding the policy, including naming or changing beneficiaries. This is an important aspect of life insurance, as the selected beneficiary is the person or entity that will receive the death benefit upon the policyowner's passing.

This authority is critical because it empowers the policyowner to ensure that their intentions regarding the distribution of their life insurance benefit align with their wishes. The insurer does not have the authority to determine who the beneficiary should be; their role is to administer the policy according to the policyowner's decisions. Similarly, the beneficiary cannot select themselves or change the designation without the policyowner's consent, and agents act as intermediaries to facilitate the insurance process but do not hold the decision-making power over beneficiary designations. This clear structure ensures that the policyowner retains control over their financial planning and legacy.