Who holds the rights to the cash value of a life insurance policy?

The rights to the cash value of a life insurance policy are held by the policyowner. This individual has invested premium payments and is the one who has contractual control over the policy. As such, they are entitled to any cash value that accumulates within the policy. The cash value can be accessed through withdrawals, loans against the policy, or by surrendering the policy altogether.

Beneficiaries, on the other hand, do not have rights to the cash value while the insured is still alive; they only receive the death benefit upon the insured's passing. The insurance company merely manages the policy and its funds but does not have ownership rights over the cash value. The insured individual refers to the person whose life is covered by the policy, and while they may have an interest in the policy, it is the policyowner who controls the cash value.