What is an irrevocable beneficiary?

An irrevocable beneficiary is someone who has been named as the recipient of the benefits of a life insurance policy or trust, and cannot be removed or changed without their consent. This means that the policyholder or grantor cannot make any changes to the beneficiary designation without the beneficiary's approval.

Irrevocable beneficiaries are typically used in situations where the policyholder or grantor wants to ensure that the benefits go to a specific person or entity, and wants to protect those assets from being changed or revoked by anyone else. This can be useful in estate planning, ensuring that certain assets are passed on exactly as intended.

It's important to note that while irrevocable beneficiaries provide a level of security and certainty, they also limit flexibility and control for the policyholder or grantor. Once a beneficiary is named as irrevocable, they typically must consent to any changes or updates in the future.