What rights does the policyowner possess regarding the policy?

The policyowner possesses significant control over the life insurance policy, and the rights to change beneficiaries and receive living benefits are crucial aspects of that ownership. The ability to change beneficiaries allows the policyowner to designate who will receive the policy's death benefit upon their passing, which can be important for updating personal circumstances such as marriage, divorce, or the birth of a child. This flexibility ensures that the policy remains aligned with the policyowner's intentions and personal situation over time.

Additionally, the right to receive living benefits typically refers to options like cash value withdrawals or accelerated death benefits, which allow policyowners to access certain funds while they are still alive under specific circumstances, such as terminal illness or long-term care needs. These provisions add an important layer of financial security for the policyowner, making the policy more than just a posthumous benefit.

In contrast, the remaining options do not accurately reflect the comprehensive rights afforded to policyowners. While the rights to file a claim and cancel the policy are indeed rights that policyowners have, they do not capture the expansive control over beneficiary designation and potential benefits during the policy's life. Engaging in underwriting decisions typically falls to the insurance company rather than the policyowner, as underwriting is primarily concerned with assessing the risk profile