What type of beneficiary has rights to sue under a life insurance policy if the insured person dies?

A donee beneficiary is a type of beneficiary who is intended to receive a benefit from a contract, such as a life insurance policy, without having provided any consideration in return. In the context of a life insurance policy, when the insured person dies, the donee beneficiary has the right to sue for the proceeds of the policy because the policy was established for their benefit.

This distinguishes donee beneficiaries from other types, such as incidental beneficiaries, who may benefit from a contract incidentally but do not have rights to enforce it or sue. Credit beneficiaries and donor beneficiaries typically involve scenarios where there is a creditor-debtor relationship at play or gifts, where legal rights may differ based on the structure of the agreement and the existence of consideration. Therefore, the donee beneficiary is the correct choice, as they possess the legal standing to claim benefits and take action in the event of the death of the insured individual under a life insurance policy.