Without written consent, a policyowner CANNOT change the beneficiary if he has named

Rationale

A policyowner cannot change the beneficiary if he has named an irrevocable beneficiary.

An irrevocable beneficiary is one whose rights to the policy proceeds cannot be altered without their consent, meaning the policyowner is legally bound to keep this beneficiary as named. This ensures that the beneficiary's interest in the policy remains protected, requiring mutual agreement for any changes to be made.

A (a revocable beneficiary.) YOUR ANSWER

A revocable beneficiary can be changed by the policyowner at any time without the need for consent from that beneficiary. This flexibility allows the policyowner to alter the beneficiary designation as their circumstances or preferences change, making it fundamentally different from an irrevocable designation.

B (an irrevocable beneficiary.) CORRECT

An irrevocable beneficiary cannot be removed or changed without their explicit consent. Once such a beneficiary is named, they gain a vested interest in the policy, making it impossible for the policyowner to make unilateral changes regarding who will receive the death benefit.

C (a permanent beneficiary.) YOUR ANSWER

The term "permanent beneficiary" is not a standard classification in insurance terminology. Typically, beneficiaries are classified as revocable or irrevocable. Therefore, a permanent beneficiary could imply a revocable status unless specifically stated otherwise, which does not accurately reflect the inability to change the designation without consent.

D (a contingent beneficiary.) YOUR ANSWER

A contingent beneficiary is a secondary beneficiary who will receive the policy proceeds only if the primary beneficiary is unable to do so. The policyowner retains the right to change the contingent beneficiary without affecting the primary beneficiary’s designation, which does not restrict changes in the same way as an irrevocable beneficiary.

Conclusion

In summary, an irrevocable beneficiary is the only designation that effectively prevents the policyowner from changing the beneficiary without consent. This legal binding protects the rights of the irrevocable beneficiary, ensuring their entitlement to the policy's proceeds remains secure. Understanding these distinctions is crucial for policyowners when making beneficiary designations, as it directly impacts their ability to manage their insurance policies.

Without written consent, a policyowner CANNOT change the beneficiary if he has named

A policyowner cannot change the beneficiary if he has named an irrevocable beneficiary.

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