Grandfather (70) wants to add me (24) as his beneficiary, I know nothing of life insurance.

Grandfather (70) wants to add me (24) as his beneficiary, I know nothing of life insurance. I suppose he’s signed up for AAA life insurance at a level 5 (of which I don’t know the significance of) and he wants to add me as sole beneficiary. I don’t know how any of that work and though I can ask him I would also like more perspectives on this topic. What happens to me if I signed his paper as beneficiary?
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