If changing the beneficiary requires the beneficiary’s signature, what type of designation is this called?

• A. Revocable
• B. Irrevocable
• C. Contingent
• D. Primary

Answer: (B)

Requiring the beneficiary’s signature to change the designation signals an irrevocable designation. When a beneficiary is irrevocable, the named person has a secured interest in the policy, and the owner cannot change or remove that beneficiary without the beneficiary’s consent. This provides protection for the beneficiary and often ties the policy to a specific arrangement, like a trust or loan collateral.

If the designation were revocable, the owner could change the beneficiary at any time without needing the beneficiary’s consent, so the signature requirement wouldn’t apply. Primary and contingent describe the order of who receives proceeds (first in line vs. next in line if the primary isn’t available) and don’t address the consent needed to change the designation.