Under a life policy, when is consent of the beneficiary required to change the designation?

Under a life policy, when is consent of the beneficiary required to change the designation?

• A. Only if the beneficiary is named irrevocable.
• B. Consent is not required in any case.
• C. Consent is required for all changes.
• D. Only if the owner is changing the policy type.

Answer: (D)

Consent from the beneficiary is needed only when the designation is irrevocable. If the beneficiary is revocable, the policy owner can change who receives the proceeds without needing the beneficiary’s agreement. An irrevocable designation gives the beneficiary a vested interest, so any changes that affect their rights require their written consent. So, changing the policy in a way that would impact an irrevocable beneficiary cannot be done unilaterally. If the owner simply changes the policy type or other non-beneficiary aspects, that still doesn’t impose consent requirements unless an irrevocable beneficiary would be affected.

Consent from the beneficiary is needed only when the designation is irrevocable. If the beneficiary is revocable, the policy owner can change who receives the proceeds without needing the beneficiary’s agreement. An irrevocable designation gives the beneficiary a vested interest, so any changes that affect their rights require their written consent. So, changing the policy in a way that would impact an irrevocable beneficiary cannot be done unilaterally. If the owner simply changes the policy type or other non-beneficiary aspects, that still doesn’t impose consent requirements unless an irrevocable beneficiary would be affected.