How does a revocable beneficiary differ from an irrevocable beneficiary?

A revocable beneficiary allows the policyholder to change the beneficiary designation at any time without needing to obtain consent from the beneficiary. This means that the policyholder has full control over who will receive the policy benefits and can make changes based on their circumstances or preferences.

In contrast, an irrevocable beneficiary is designated in such a way that their rights to the policy are protected. The key feature of an irrevocable beneficiary is that they cannot be changed or removed from the policy without their consent. This provides a level of security and assurance for the irrevocable beneficiary, as they are assured that they will receive the benefits unless they agree to a change.

This fundamental difference highlights the importance of understanding the implications of each type of beneficiary designation. An irrevocable beneficiary provides less flexibility for the policyholder but offers more security to the beneficiary.