Which designation cannot be changed without the written consent of the beneficiary?

Which designation cannot be changed without the written consent of the beneficiary?

• A. Irrevocable designation
• B. Revocable designation
• C. Common disaster clause
• D. Trusts

Answer: (A)

An irrevocable designation is designed to give the named beneficiary a vested interest in the policy or account. Once you place someone as irrevocable, you can’t change or remove that designation, or alter the payout, without obtaining that beneficiary’s written consent. This protects the beneficiary’s rights and prevents the owner from unilaterally redirecting the proceeds. Revocable designations, in contrast, can be changed by the owner at any time without the beneficiary’s consent, which is why they aren’t the correct choice here. A common disaster clause addresses what happens if primary and contingent beneficiaries are simultaneously affected, not who can or cannot change a designation. Naming a trust as beneficiary can be changed under certain terms, but the key distinction in this question is the binding nature of an irrevocable designation that requires the beneficiary’s consent to modify.

An irrevocable designation is designed to give the named beneficiary a vested interest in the policy or account. Once you place someone as irrevocable, you can’t change or remove that designation, or alter the payout, without obtaining that beneficiary’s written consent. This protects the beneficiary’s rights and prevents the owner from unilaterally redirecting the proceeds.

Revocable designations, in contrast, can be changed by the owner at any time without the beneficiary’s consent, which is why they aren’t the correct choice here. A common disaster clause addresses what happens if primary and contingent beneficiaries are simultaneously affected, not who can or cannot change a designation. Naming a trust as beneficiary can be changed under certain terms, but the key distinction in this question is the binding nature of an irrevocable designation that requires the beneficiary’s consent to modify.