Who is currently empowered to select the settlement option for the whole life insurance policy?

The policy owner is the individual who holds the rights and responsibilities associated with the insurance contract. This includes the ability to make decisions regarding the policy, such as selecting settlement options or beneficiaries. In the context of whole life insurance, the settlement option refers to how the death benefit or cash value will be distributed or paid out. Since the policy owner maintains control over these decisions, they are the one empowered to select the settlement option, making this choice key to understanding the rights associated with policy ownership.

In contrast, family members such as Rolf, the husband, and Vera, the daughter, typically do not have the authority to decide on settlement options unless they are designated beneficiaries or have been granted specific powers of attorney by the policy owner. The insurance company facilitates the distribution once the policy owner's instructions are provided but does not have the authority to make these selections independently.