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In life insurance, who you name as a beneficiary can be either revocable or irrevocable, and that status affects whether the beneficiary has a fixed, protected claim to the policy proceeds.

The true statement is that an irrevocable beneficiary has a vested interest in the policy benefits. Once designated irrevocably, the beneficiary’s rights to the proceeds are fixed and cannot be removed or altered by the policyowner without the beneficiary’s consent. This guaranteed right is what “vested” means in this context and is the defining feature of an irrevocable designation.

By contrast, a revocable beneficiary can be changed by the policyowner at any time without the beneficiary’s consent, so they don’t have the same guaranteed claim. The idea that an irrevocable designation can be changed without consent is therefore incorrect. And the policyowner naming a revocable beneficiary does not imply they must be the owner; beneficiaries (revocable or irrevocable) are separate from ownership.