In regard to beneficiary designations, which of the following is true?

The correct answer highlights a key principle of life insurance policies concerning beneficiary designations. Policy owners have the right to change the beneficiary at any time, as long as they follow the proper procedures set by the insurance company. This flexibility allows policy owners to ensure that their benefits align with their current wishes and circumstances, whether due to changes in relationships, financial situations, or other personal considerations.

This ability to modify beneficiary designations is a vital feature, as it grants the policy owner control over who will receive the death benefit upon their passing. It is essential for policy owners to be aware of this right and to regularly update their beneficiaries as their life situations evolve to ensure that benefits are distributed according to their intentions.

In contrast, some of the other statements presented do not accurately describe the nature of beneficiary designations. For instance, while it might be prudent for policy owners to review their beneficiary designations periodically, there is no regulatory requirement to do so annually. Similarly, contingent beneficiaries are those who are designated to receive benefits if the primary beneficiary is unable to do so, not the first in line to receive benefits. Additionally, there are no requirements for all beneficiaries to be blood relatives; beneficiaries can be friends, organizations, or anyone the policy owner chooses. This broad