The ability to change the beneficiary designation on a life insurance policy is typically granted to the policyholder, also known as the policy owner. As the person who owns the life insurance policy, the policyholder has the right to designate and modify the beneficiaries at their discretion during their lifetime. This flexibility allows policyholders to reflect changes in personal circumstances, such as marriages, divorces, births, or other life events that may impact their intended beneficiaries.

It's important to note that the policyholder must be mentally competent and have the legal capacity to make decisions in order to change the beneficiary designation. Additionally, some life insurance policies may have specific restrictions or conditions related to changing beneficiaries, so policyholders should carefully review the terms of their individual policies.

In the event of the policyholder's death, the right to change the beneficiary designation typically ceases. At that point, the insurance proceeds will be paid out to the designated beneficiary or beneficiaries as specified in the most recent, valid beneficiary designation on file with the insurance company.

To make changes to the beneficiary designation, the policyholder usually needs to contact the insurance company directly and complete the necessary forms or paperwork to ensure that the changes are properly recorded and legally binding. It's advisable for individuals with life insurance policies to review and update their beneficiary designations periodically to ensure that the policy aligns with their current wishes and circumstances.

The duration before a life insurance policy pays out depends on the type of policy and its specific terms. In general, life insurance policies fall into two primary categories: term life insurance and permanent life insurance.

Term Life Insurance: This type of policy provides coverage for a specified term, such as 10, 20, or 30 years. If the policyholder passes away during the term, the death benefit is paid out to the beneficiaries. If the policyholder outlives the term, there is typically no payout, and the coverage expires. Payments, or premiums, are made regularly (e.g., monthly or annually) throughout the term.
Permanent Life Insurance: This category includes policies like whole life, universal life, and variable life insurance. These policies provide coverage for the entire life of the policyholder, as long as premiums are paid. Premiums for permanent life insurance are often higher than those for term life insurance because they cover both the cost of insurance and accumulate cash value over time. The death benefit is paid out to beneficiaries whenever the policyholder passes away.

For both types of policies, the key is to ensure that premiums are consistently paid to keep the policy in force. If premiums are not paid, the policy may lapse, and coverage could be lost. It's crucial for policyholders to understand the terms of their specific life insurance policy and to stay informed about payment schedules to ensure that their coverage remains active when it is needed most.