Tennessee Life Producer Practice Exam

What does a revocable beneficiary designation imply for the policyholder's son?

1. The son has no rights to benefits

2. The policyholder cannot change the designation

3. The policyholder can change or revoke the designation at any time

4. The policyholder must notify the son before any changes

The correct answer is: The policyholder can change or revoke the designation at any time

A revocable beneficiary designation signifies that the policyholder retains complete control over the beneficiary status of their life insurance policy. In this case, the policyholder can change or revoke the designation at any time, meaning they could designate a different beneficiary or remove the son from the policy altogether if they choose to do so. This flexibility allows the policyholder to adapt to changing personal circumstances or preferences without needing consent from the current beneficiary. The understanding of revocable versus irrevocable beneficiary designations is crucial in life insurance planning, as it affects the rights of the beneficiaries and the policyholder's decision-making power regarding the policy. The ability to change the beneficiary designation as needed is a significant aspect of managing life insurance policies effectively.