What is a irrevocable beneficiary?

An irrevocable beneficiary is a beneficiary of a life insurance policy or trust whose designation cannot be changed without their consent. This means that the policy owner or grantor cannot alter or revoke the beneficiary designation without the irrevocable beneficiary's approval.

Irrevocable beneficiaries are typically chosen for various reasons, such as ensuring that the policy proceeds are protected from potential creditors, providing financial security for a dependent, or maintaining a specific estate plan. Once designated as an irrevocable beneficiary, they have a legal right to the policy proceeds and cannot be disinherited without their consent.

It's important to carefully consider the implications of naming an irrevocable beneficiary, as it can limit flexibility in changing beneficiaries in the future. It's recommended to seek advice from a financial or legal advisor before making such a decision.