Irrevocable Beneficiary

An irrevocable beneficiary is a beneficiary designation that cannot be changed by the policy owner without the consent of that beneficiary. Unlike a revocable beneficiary — which can be changed at the policyholder's discretion — an irrevocable beneficiary has a vested interest in the policy proceeds. This designation is commonly required in divorce decrees, business buy-sell agreements, or loan collateral situations. Because the policyholder cannot change an irrevocable beneficiary without consent, they also cannot take policy loans, surrender the policy, or make other changes that would affect the beneficiary's interest without approval. Irrevocable designations must be made in writing and filed with the insurer.