Tennessee Life Producer Practice Exam

Which type of life insurance beneficiary requires consent from the beneficiary to change?

1. Revocable beneficiary

2. Contingent beneficiary

3. Irrevocable beneficiary

4. Primary beneficiary

The correct answer is: Irrevocable beneficiary

An irrevocable beneficiary is one who has a vested interest in the policy and must give consent for any changes to be made. This means that the policyowner cannot change the beneficiary designation without the irrevocable beneficiary's approval. The reason for this is that an irrevocable beneficiary has a right to the policy's proceeds upon the insured's death, so their consent is necessary to alter this arrangement. In contrast, revocable beneficiaries can be changed at the discretion of the policyowner without needing the beneficiary's approval. Contingent beneficiaries are secondary beneficiaries who only receive the payout if the primary beneficiary is not available, and their designation can also be changed without consent. Primary beneficiaries are the first in line to receive the benefits and can be changed by the policyowner as well, typically without needing any form of consent from the current primary beneficiary.