Who has the right to receive insurance benefits upon the insured's death?

The designation of beneficiaries is central to the structure of life insurance policies. When a policy is issued, the policy owner can choose one or more beneficiaries who will receive the insurance benefits upon the death of the insured. This designation can be made during the application process or later on by making changes to the policy.

Choosing designated beneficiaries ensures that the policy owner has control over who will receive funds, and it can reflect personal choices or financial planning strategies. This is important in estate planning, as the benefits typically pass directly to the beneficiaries without going through probate, thus providing immediate financial support without delays related to estate settlements.

While the policy owner may have certain rights related to the policy and its ownership, and the estate of the insured might also have rights, those rights typically do not pertain to who directly receives the benefits upon the death of the insured. Instead, it is the designated beneficiaries who have the rightful claim to the benefits funded by the policy.