Irrevocable Beneficiary: Definition, Consent Rules & LLQP Traps
An irrevocable beneficiary is a person named to receive a life insurance policy's death benefit whose designation the policyowner cannot change — and whose rights the owner cannot override — without that beneficiary's written consent.
Why it matters on the LLQP exam
Beneficiary questions are some of the most predictable marks on the Life Insurance module, and the irrevocable/revocable split is the core distinction. The exam tests who controls the policy, not just who gets paid.
Rules to memorize:
- Once a beneficiary is designated irrevocably, the owner needs that beneficiary's consent to change the designation, surrender the policy, or assign it.
- The designation must be made in writing — in the application or by a later declaration filed with the insurer. A verbal promise counts for nothing.
- If the irrevocable beneficiary dies before the insured, the designation generally lapses and the owner regains full control.
- Naming a minor as irrevocable beneficiary is a trap in real life and on the exam: a minor cannot give legal consent, so the owner is stuck until the child reaches the age of majority or a court intervenes.
The classic scenario: an owner divorces and wants to remove an ex-spouse. If the ex was designated irrevocably, no consent means no change — the insurer pays whoever the contract says, whatever the separation agreement promises.
Example question
Maya designates her husband as irrevocable beneficiary of her $500,000 policy. After their divorce she asks the insurer to substitute her sister, but her ex-husband refuses to consent. What happens?
- The insurer changes the designation because the marriage ended
- The designation cannot be changed without his consent
- The insurer changes it once Maya signs a new application
- The benefit is split between the ex-husband and the sister
Answer: B — an irrevocable designation locks in the beneficiary's rights; only his consent or his death releases the owner.
Compare this with the revocable beneficiary, where the owner keeps full control, and review the broader contract rules in the life insurance and taxation hub.