In a life insurance policy, which provision states who may select policy options and designate beneficiaries?

The provision that states who may select policy options and designate beneficiaries is referred to as "Owner's Rights." This provision is fundamental in detailing the rights of the policy owner, who is typically the individual that purchased the policy. It grants the owner the authority to make important decisions throughout the life of the policy, such as naming or changing beneficiaries, selecting coverage options, and adjusting the policy features as allowed.

Understanding this provision is critical because it emphasizes the owner's control over the policy. For instance, the owner has the ability to choose who will receive the death benefit upon their passing, which is a key aspect of life insurance planning.

Other options, while related to the general structure of a life insurance policy, do not directly address the owner's rights to choose policy options or designate beneficiaries. The insurer's obligations pertain to the commitments that the insurer must fulfill, such as paying out benefits, while the beneficiary clause specifically relates to the conditions under which benefits are paid to the beneficiaries designated by the owner. The policy structure provision encompasses the overall terms and components of the policy but does not focus on the specific rights of the policy owner regarding selections and designations.