Does It Matter Who Owns A Life Insurance Policy? 
Yes . The owner maintains all rights of ownership such as cash values , selection of beneficiary and right to make changes , transfer , cancel , borrow , etc. . Often the owner is the insured . But the owner can be any one or entity with an insurable interest in the life insured -LRB- spouse or family member , business , charity -RRB- . Trusts can be used as owners to distribute proceeds according to trust provisions . Irrevocable life insurance trusts are used to ensure life insurance proceeds do not inflate the taxable estates of insureds but make proceeds available to the heirs for estate liquidity . 