Irrevocable Beneficiary

What Does Irrevocable Beneficiary Mean?

An irrevocable beneficiary is a beneficiary of a life insurance policy who is guaranteed to receive the policy’s benefits unless they consent otherwise. Irrevocable beneficiaries hold a legal right to the policy’s benefits.

Insuranceopedia Explains Irrevocable Beneficiary

Policyholders do not have the right to remove an irrevocable beneficiary from their life insurance policy. People often designate their children or spouses as irrevocable beneficiaries to guarantee they receive financial protection. This permanence often comes up during divorce settlements and child support arrangements, which is one reason anyone setting up an irrevocable designation should review the common life insurance beneficiary rules and mistakes to avoid before signing.

This differs from a revocable beneficiary, whom the policyholder has the right to remove from the policy. Couples weighing this option while comparing the best life insurance companies often start with a revocable designation since it can be changed without the beneficiary’s consent if circumstances shift.