What does having an Irrevocable Beneficiary ensure?

Having an Irrevocable Beneficiary ensures that the beneficiary has guaranteed rights to policy assets. This type of designation means that once the policyowner names an irrevocable beneficiary, they cannot change this beneficiary without obtaining the consent of the beneficiary. This gives the irrevocable beneficiary certain protections since they have a secured right to the proceeds of the policy upon the death of the insured.

This also creates a level of security and financial assurance for the beneficiary, as they can be confident that they will receive the benefits as designated in the policy. It contrasts with a revocable beneficiary designation, where the policyowner retains the flexibility to change beneficiaries at any time without needing approval from anyone else.

The other options do not accurately reflect the nature of an irrevocable beneficiary. The second option implies that the policyowner retains the ability to make changes freely, which is not the case with an irrevocable designation. The third option suggests that an irrevocable beneficiary would lead to higher distributions, which isn't inherently true as distribution amounts are typically predetermined by the policy terms. Finally, the last option suggests unlimited flexibility for the policyowner, which is in direct contradiction to the essence of an irrevocable beneficiary designation.