If a life insurance policy has irrevocable beneficiary designation, what does it mean?

An irrevocable beneficiary designation means that once the policyholder names a beneficiary, that choice cannot be changed without the beneficiary's consent. This provides a layer of security for the beneficiary, ensuring that they will receive the policy benefits in the event of the policyholder's death, unless they agree to a change.

In this context, the irrevocable status prevents the policyholder from altering the beneficiary or making changes to the policy that would impact the beneficiary's rights without obtaining permission from the beneficiary. This is an important feature in estate planning, often used to protect the interests of a loved one or to ensure that specific financial intentions are met.

Other options do not accurately reflect the nature of an irrevocable beneficiary designation. For instance, changing the beneficiary at any time or making the designation revocable without permission would contradict the very definition of "irrevocable." Additionally, regarding the option that suggests the beneficiary will receive cash surrender value, it does not apply to the irrevocable designation specifically, as cash surrender value pertains to the policy’s cash value feature rather than the beneficiary status.