Which policy allows for the insured to name multiple beneficiaries with varying rights?

Universal life insurance is the correct choice because it allows the policyholder significant flexibility in managing the policy, including the ability to name multiple beneficiaries with varying rights such as primary and contingent beneficiaries. This means that the owner of the policy can designate certain beneficiaries to receive benefits first, while others may be named to receive benefits in the event the primary beneficiary passes away. The flexibility in naming beneficiaries is a distinct feature tailored to meet various needs and preferences, allowing policyholders to structure their beneficiary designations based on their personal and financial circumstances.

In contrast, while group insurance and term insurance commonly have straightforward beneficiary designations, they may not offer the same level of flexibility in naming multiple beneficiaries with varying rights. Variable life insurance also provides some flexibility regarding investment options and death benefits, but its structure does not specifically emphasize varied beneficiary rights in the same manner that universal life insurance does.