If Bonnie wishes to retain all rights of ownership while naming her husband as the beneficiary, what type of beneficiary should she choose?

Choosing a revocable beneficiary allows the policyholder, in this case, Bonnie, to retain all rights of ownership over the life insurance policy. This means she can change the beneficiary designation or make other modifications to the policy without needing consent from the beneficiary. By naming her husband as a revocable beneficiary, Bonnie can ensure that he will receive the policy proceeds upon her death, but she is not forfeiting her control over the policy or its benefits.

The flexibility provided by a revocable beneficiary designation is crucial for individuals who may want to make future changes based on changing circumstances or preferences. In contrast, an irrevocable beneficiary designation would require Bonnie to relinquish her ability to change the beneficiary without the consent of her husband, which would not align with her desire to retain ownership rights. Other types of beneficiaries, like contingent or primary beneficiaries, also do not directly address the issue of ownership rights in the same way that a revocable beneficiary does. Therefore, the choice of a revocable beneficiary is the most suitable option for her situation.