Which provision allows a policyholder to change the beneficiary of a life insurance policy?

The provision that allows a policyholder to change the beneficiary of a life insurance policy is the Change of Beneficiary provision. This provision is a critical feature in most life insurance policies, as it grants the policyholder the flexibility to modify the beneficiaries designated to receive the policy benefits.

The Change of Beneficiary provision typically outlines the process by which a policyholder can update beneficiary information, ensuring that the policy reflects their current intentions or circumstances. For instance, a policyholder may wish to change beneficiaries due to significant life events, such as marriage or divorce, and this provision provides them with that capability without the necessity of amending the entire policy.

In contrast, the Entire Contract provision pertains to the completeness of the policy document, indicating that the written contract represents the entire agreement between the insurer and the policyholder. The Payment of Claims provision details the process and conditions under which the insurer pays benefits upon the policyholder's death. Absolute assignment involves the transfer of ownership of the insurance policy to another party, which is different from simply changing the beneficiary. Thus, the Change of Beneficiary provision specifically addresses the ability to amend the designated recipient of benefits, making it the correct choice.