Ownership rights are the bundle of legal powers granted to the policyowner of a life insurance contract, distinct from the rights of the insured or beneficiaries. These rights typically include the ability to name and change beneficiaries, assign or transfer the policy, take loans or withdrawals, surrender the contract, select dividend options, and choose settlement options. The policyowner also bears responsibility for premium payments and receives policy statements and correspondence. Ownership rights can belong to an individual, a trust, a business entity, or jointly held parties, and they play a central role in tax, estate, and asset protection planning. Because life insurance benefits and values follow ownership, structuring who holds these rights is often as important as selecting the product itself.

In day-to-day planning, advisors focus on ownership rights when designing strategies involving irrevocable life insurance trusts, key person coverage, buy-sell agreements, or policies intended for legacy planning. For example, placing ownership in an ILIT can keep death benefits outside the insured's taxable estate, while corporate ownership supports business continuation planning. Advisors review applications carefully to ensure the correct owner is listed from the outset and revisit ownership when marriages, divorces, business sales, or major life events occur. They also educate clients about the difference between being insured and being the policy owner, as some people mistakenly assume they have control simply because the policy covers their life. When ownership rights are transferred, advisors coordinate documentation and discuss potential gift, estate, or transfer-for-value implications. By understanding ownership rights thoroughly, producers make sure policy control aligns with family goals, business needs, and the intended tax treatment of life insurance proceeds.