Dena purchases a life insurance policy naming her adult son as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries.

Question

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The rights of a donee beneficiary, such as Dena's son, typically do not fully vest until certain conditions are met, which can include the death of the policyholder in the case of life insurance. Until then, the policyholder generally retains the right to change beneficiaries or cancel the policy.

Dena Purchases a Life Insurance Policy Naming Her Adult Son