Question 24

A policyowner cannot change the dividend schedule.

A policyowner has the right to change the beneficiary, payment mode, and dividend option of their policy, but they do not have the authority to change the dividend schedule.

A) beneficiary.

The beneficiary is a party designated to receive the policy benefits upon the insured's death. The policyowner retains the right to change the beneficiary at any time, making this option incorrect as something that cannot be changed.

B) payment mode.

The payment mode refers to how premiums are paid, whether monthly, quarterly, or annually. The policyowner can typically change the payment mode according to their financial preferences, thus making this option incorrect as well.

C) dividend option.

The dividend option allows the policyowner to choose how to receive dividends from the policy, such as taking them in cash or using them to purchase additional insurance. This choice remains within the policyowner's control, meaning this option is also incorrect.

D) dividend schedule.

The dividend schedule outlines the timing and frequency of dividend payments, which is generally predetermined by the insurance company and cannot be altered by the policyowner. This makes it the correct answer, as it is the only option that the policyowner does not have the right to change.

Conclusion

The dividend schedule is fixed and determined by the insurance company, whereas the beneficiary, payment mode, and dividend option are all elements that the policyowner can adjust. Therefore, option D is the only correct response as it reflects an aspect of the policy that is not subject to change by the policyowner.