When you set up a life insurance policy or certain types of trusts, you must name a beneficiary to receive the benefits after your death. An irrevocable beneficiary is different from a regular (revocable) beneficiary because you cannot change or remove them without their consent.
The Commitment of Naming an Irrevocable Beneficiary
Unlike a revocable beneficiary, who can be changed at any time, an irrevocable beneficiary’s rights are legally protected. Once named, they gain an ownership interest in the policy benefits, meaning any changes, such as altering coverage amounts or canceling the policy, typically require their written approval.
This arrangement is often used in divorce settlements, business agreements, or estate planning to ensure financial stability for a particular person, such as a former spouse or dependent.
Rights of an Irrevocable Beneficiary 
- They must be notified before any changes to the policy are made.
- They may be able to block policy cancellations or reductions.
- They retain their rights even if the policyholder’s circumstances change.
When to Consider This Designation
Choosing an irrevocable beneficiary is a long-term decision with legal consequences. It can be beneficial when you want to guarantee financial protection for someone, but it also limits flexibility if your life circumstances change.
Our estate planning attorneys at Bloom Legal Advisors can help you decide whether this option is right for you and ensure it fits into your larger estate plan, which may also include wills, trusts, and probate avoidance strategies.
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