What is the difference between a revocable and an irrevocable beneficiary?

A revocable beneficiary is indeed characterized by the policyholder's ability to change the beneficiary designation without needing to obtain consent from that beneficiary. This flexibility allows the insured individual to alter their choices as circumstances change, such as in the case of a divorce, new relationships, or other life events. It empowers the policyholder to ensure that the life insurance benefits are directed to the intended individuals at any given moment without needing to navigate consent processes.

In contrast, an irrevocable beneficiary has a different status. Once designated, an irrevocable beneficiary's status cannot be changed, nor can the beneficiary be replaced without their consent. This means that the policyholder must maintain a steady relationship with this beneficiary, as any desire to change them would necessitate the agreement of the irrevocable beneficiary.

Understanding these distinctions is vital for policyholders to manage their life insurance policies according to their current intentions and life situations.