Which statement describes an irrevocable beneficiary?

Which statement describes an irrevocable beneficiary?

• A. An irrevocable beneficiary has a vested interest in policy benefits.
• B. Irrevocable beneficiaries can be removed at any time without consent.
• C. An irrevocable beneficiary has no rights to changes in the policy.
• D. Irrevocable beneficiaries must be the owner of the policy.

Answer: (A)

An irrevocable beneficiary has a vested right to the policy proceeds; once someone is named irrevocable, the policy owner cannot change or remove that beneficiary or alter their rights without the beneficiary’s consent. That vested interest is what makes this description the best fit. You can’t remove an irrevocable beneficiary at will, and changes that would affect their interest typically require their agreement. They do have rights regarding changes that would impact their benefits, and the owner does not have to be the same person as the irrevocable beneficiary.

An irrevocable beneficiary has a vested right to the policy proceeds; once someone is named irrevocable, the policy owner cannot change or remove that beneficiary or alter their rights without the beneficiary’s consent. That vested interest is what makes this description the best fit. You can’t remove an irrevocable beneficiary at will, and changes that would affect their interest typically require their agreement. They do have rights regarding changes that would impact their benefits, and the owner does not have to be the same person as the irrevocable beneficiary.