What must be designated on the policy application for a life insurance policy?

The intended beneficiary of the proceeds must be designated on the policy application for a life insurance policy because this information is crucial in determining who will receive the benefits upon the death of the insured. Specifying a beneficiary ensures that the proceeds are paid directly to the designated individual or entity, providing clarity and preventing potential disputes among heirs. Properly identifying the beneficiary also facilitates a smoother claims process for the loved ones of the deceased, ensuring that the financial support is delivered as intended.

While other details like the policy premium amount, date of application submission, and the policy owner's social security number are important for the application process and overall administration of the policy, they do not directly affect the distribution of the insured's life insurance benefits upon their passing. The primary focus of the policy application in the context of beneficiaries is to clearly state who is entitled to the funds, highlighting their role in the insurance policy's purpose.