Washington Life Producer Practice Exam

When can a beneficiary change occur in an insurance policy?

1. Only at the end of the policy term

2. Normally at any time during the policy term

3. Only with the consent of the insurance company

4. Only on renewal of the policy

The correct answer is: Normally at any time during the policy term

A beneficiary change can typically occur at any time during the policy term, allowing the policyholder flexibility in managing their insurance policy. This means that if circumstances change in the policyholder's life—such as marriage, divorce, or the birth of a child—they can update the designated beneficiary to reflect their current wishes without having to wait for policy renewal or the end of the term. The ability to change beneficiaries directly supports the policyholder’s right to control who will receive the benefits upon their passing. It's important for individuals to regularly review and update their beneficiary designations to ensure that their assets are distributed according to their current intentions. This fluidity is a cornerstone of policyholder rights, making it easy for them to adapt their insurance coverage as their personal circumstances evolve.