Which action is prohibited for a policyowner with an irrevocable beneficiary?

When a policyowner names an irrevocable beneficiary, they establish a legal requirement that any changes to the policy involving that beneficiary cannot be made without the beneficiary's consent. This means that the policyowner does not have the unilateral authority to change, replace, or remove the irrevocable beneficiary from the policy.

This restriction is in place to protect the rights of the irrevocable beneficiary, ensuring that the policyowner cannot alter the intended distribution of the policy benefits without considering the interests of the beneficiary. Thus, if the policyowner wishes to change the beneficiary designation, they must obtain consent from the irrevocable beneficiary, making this action prohibited without such approval.

In contrast, actions like cancelling the policy, taking a loan against the policy, or applying for an additional policy may still be within the policyowner's rights, regardless of the beneficiary designation. Such actions do not require the beneficiary's consent, which further highlights why altering the beneficiary designation without consent is specific to policies with irrevocable beneficiaries.