Sandra purchases a life insurance policy naming her husband 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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A donee beneficiary's rights typically vest when the insured dies, not at the time of policy purchase, especially if the policy allows changes to beneficiaries.

Sandra Purchases a Life Insurance Policy Naming Her Husband as Beneficiary