Who typically chooses the beneficiary of a life insurance policy?

The policyowner is the individual who typically has the authority to designate the beneficiary of a life insurance policy. This person may be the insured or another entity, but their role is crucial, as they decide who will receive the death benefit in the event of the insured's passing.

Choosing the beneficiary allows the policyowner to ensure that the insurance proceeds are directed to a specific person or organization, reflecting their wishes and needs. This choice can also be changed by the policyowner, depending on their circumstances and preferences.

In the context of other options, an insurance agent does not have the authority to select a beneficiary; their role is primarily to assist the policyowner in understanding and purchasing the policy. The insurance company processes the claim according to the policy terms, but it does not intervene in beneficiary designations. Lastly, stating that the beneficiary is predetermined implies a lack of flexibility and choice, which is not the case for standard life insurance policies. Thus, the policyowner's ability to choose their beneficiary is a fundamental aspect of life insurance contracts.