A life insurance policy owner does not have the right to

• A. Change the beneficiary
• B. Borrow against cash value
• C. Surrender the policy for cash value
• D. Revoke an absolute assignment

Answer: (D)

Ownership in a life insurance policy gives the owner several control rights, such as naming or changing the beneficiary, borrowing against the cash value, or surrendering the policy for its cash value. However, an absolute assignment is a complete transfer of ownership to someone else. Once the ownership is transferred in that way, the original owner no longer has ownership rights and cannot revoke the assignment. That’s why not having the right to revoke an absolute assignment is correct. The other actions—changing the beneficiary (subject to any irrevocable designation), borrowing against cash value, and surrendering for cash value—are typically available to the policy owner.