Who is authorized to assign a life insurance policy as collateral for a loan?

In the context of life insurance, the policyownership plays a crucial role in determining who has the authority to make decisions regarding the policy. The policyowner is the individual or entity that possesses the rights associated with the insurance policy, which includes the ability to assign the policy as collateral for a loan. This assignment allows the policyowner to leverage the cash value or death benefit of the policy to secure financing.

The policyowner holds control over key decisions such as naming beneficiaries, making changes to the policy, and assigning the policy as collateral. This level of authority is central to the ownership rights granted under life insurance contracts.

In contrast, the beneficiary is designated to receive the death benefit upon the policyowner's death and does not have the authority to assign the policy. The insurance agent acts as a representative for the insurer and assists with policy transactions, but lacks the authority to assign the policy on behalf of the policyholder. The insurer, while involved in the administration of the policy, does not have the right to assign the policy as collateral; that authority resides solely with the policyowner. Therefore, the correct answer highlights the significant responsibilities and rights that come with being the policyowner.