What distinguishes a revocable beneficiary from an irrevocable beneficiary?

A revocable beneficiary is one who can be changed or modified by the policyholder at any time without needing the consent of the beneficiary. This means that the policyholder retains control over their life insurance policy and can make decisions about who will ultimately receive the benefits. If the policyholder decides to change the beneficiary, they can do so through simple written notice to the insurance company.

In contrast, an irrevocable beneficiary is one that cannot be changed without the consent of the beneficiary. This designation provides a level of security for the beneficiary, ensuring that they will receive the policy benefits as long as the policy is in force, and it can limit the policyholder's control over the policy.

Understanding these distinctions is crucial for policyholders, as it impacts their financial planning and the distribution of their assets upon their passing.