Final answer:
The provision in a life insurance policy that allows the policyowner to change the beneficiary designation is called the change of beneficiary provision.
Step-by-step explanation:
The life insurance provision which allows the policyowner to change the policy's beneficiary designation is called the change of beneficiary provision. This provision gives the policy owner the flexibility to update or modify who will receive the policy's death benefit in the event of their death. It is an important feature of life insurance policies as it allows individuals to update their beneficiaries as their life circumstances change.