What is required if a policyowner wants to cash in a policy with an irrevocable beneficiary?

When a policyowner has an irrevocable beneficiary designated on a life insurance policy, any significant action regarding the policy, such as cashing it in, requires the consent of that irrevocable beneficiary. This is because the designation of an irrevocable beneficiary provides that individual with certain rights to the policy, and their approval is necessary to alter the benefits they are entitled to.

Cashing in a policy effectively removes the value of insurance protection from the irrevocable beneficiary, which directly affects their potential payout in the event of the policyowner's death. Therefore, the policyowner must obtain the consent of the irrevocable beneficiary— in this context, the wife— to proceed with cashing in the policy.

In contrast, informing the wife about the decision, taking a loan against the policy, or issuing the check in her name do not fulfill the requirement of consent for making changes to the policy benefits. These options do not acknowledge the irrevocable beneficiary's rights in the same way that obtaining consent does, which is why obtaining the wife's consent is the correct and necessary action in this scenario.