Question 51

The policyowner cannot change the beneficiary if the beneficiary is irrevocable.

An irrevocable beneficiary designation prevents the policyowner from changing the beneficiary without the consent of the irrevocable beneficiary. This provision is designed to protect the interests of the beneficiary, ensuring that they have a guaranteed right to receive the policy benefits.

A) insurable

The term "insurable" refers to the ability to be covered under an insurance policy based on risk assessment. This designation does not pertain to the rights related to changing beneficiaries, making this option incorrect.

B) power of attorney

A power of attorney grants someone the authority to act on behalf of another, but this does not relate to the designation of a beneficiary in a life insurance policy. Therefore, this option is not applicable to the question regarding beneficiary changes.

C) contingent

A contingent beneficiary is one who is entitled to receive benefits only if the primary beneficiary is unable to claim them. The policyowner retains the right to change contingent beneficiaries, so this option does not align with the conditions that would prevent a change.

D) irrevocable

An irrevocable beneficiary is one that cannot be changed without the consent of that beneficiary. This means that if a beneficiary is designated as irrevocable, the policyowner is legally bound to that choice, making this option correct.

Conclusion

The irrevocable beneficiary designation is the only choice that legally restricts the policyowner from making changes to the beneficiary designation. In contrast, the other options do not impose such a restriction, thereby reinforcing why the correct answer is definitively D. Understanding these distinctions is essential for managing insurance policies effectively.