If a life insurance policy designates an irrevocable beneficiary, what restrictions apply?

When a life insurance policy designates an irrevocable beneficiary, specific restrictions apply that protect the rights of the beneficiary. In this scenario, the correct interpretation is that the beneficiary can only be changed with permission from that irrevocable beneficiary.

An irrevocable beneficiary has a definite claim to the policy benefits, meaning that the policy owner cannot alter the beneficiary designation without obtaining consent from the irrevocable beneficiary. This provision ensures that the interests of the irrevocable beneficiary are safeguarded, preventing the policy owner from simply changing the beneficiary at will, which would otherwise undermine the beneficiary's established rights.

This feature of the policy emphasizes the importance of the relationship and trust between the policyholder and the irrevocable beneficiary, as any modification requires mutual agreement, thereby fostering a sense of security for the beneficiary.