What is the primary difference between revocable and irrevocable beneficiaries in a life insurance policy?

The primary difference between revocable and irrevocable beneficiaries in a life insurance policy is that revocable beneficiaries can be changed by the policyholder at any time without needing the consent of the beneficiary. This flexibility allows the policyholder to adjust their life insurance policy as circumstances change, such as marriage, divorce, or other changes in relationships.

In contrast, irrevocable beneficiaries cannot be changed unless specific conditions are met, typically requiring the beneficiary's consent. This designation provides a level of security for the beneficiary, as they are guaranteed to receive the policy benefits unless they agree to any changes.

Understanding this distinction is crucial when designing a life insurance policy, as it affects how benefits are managed and distributed upon the policyholder's passing. Therefore, recognizing that revocable beneficiaries retain the ability for the policyholder to modify them highlights the control the policyholder has in managing their policy throughout its duration.