An Irrevocable Beneficiary is a beneficiary with is given additional powers, so that policy changes (e.g. changes in coverage, access to cash surrender value etc.) can only be made with the signatures of the owner of the policy and the beneficiary. It is a very serious decision to give a beneficiary this status.
Insurance Tip related to Irrevocable Beneficiary:
Second marriage: If it is a second marriage, then already existing plans may have an irrevocable beneficiary designation where the beneficiary cannot be changed. This is important to know: a revocable beneficiary can be changed by the policy owner without the signature of the beneficiary. An irrevocable beneficiary requires that policy changes can be made only with both signatures: the owner of the policy and beneficiary.
Irrevocable beneficiary: Expert Opinion
An irrevocable beneficiary is someone who is named in a life insurance policy, and it is different from the traditional revocable beneficiary, because if the owner of the policy wants to change the beneficiary, the irrevocable beneficiary needs to sign off. Whereas with a regular revocable policy, the revocable beneficiary would not need to sign off for a beneficiary change. This is often the case in a divorce agreement where they would name the beneficiary as irrevocable.