How does an irrevocable beneficiary affect the policyholder's ability to change beneficiary designations?

An irrevocable beneficiary designation is a significant aspect of a life insurance policy because it establishes that the beneficiary cannot be changed without the consent of that beneficiary. This means that if a policyholder names someone as an irrevocable beneficiary, they must obtain the agreement of that individual before they can make any adjustments to the beneficiary designation.

This requirement protects the irrevocable beneficiary's rights to the policy's death benefit, ensuring they have a legal claim to the proceeds specified in the policy. The other options presented do not accurately capture the implications of naming an irrevocable beneficiary. Thus, the need for consent is crucial in understanding the limitations imposed on the policyholder regarding changes in beneficiary designations.