What is the definition of Irrevocable Beneficiary?

An Irrevocable Beneficiary is a beneficiary to a life insurance policy or annuity. This kind of beneficiary, once assigned by the policy owner or the annuitant, cannot be removed, except if the irrevocable beneficiary agrees to it in writing.

This means that the irrevocable beneficiary has a vested interest in the annuity or policy, even when the annuitant or insured is still alive. Assigning someone as an irrevocable beneficiary instead of a revocable beneficiary may have something to do with tax savings.

The policy owner or annuitant may also assign specific percentages that the beneficiary stand to receive in relation to the death benefit or to the annuity payments. This may be the case if there is more than one beneficiary. If no such percentages are assigned, the amount is divided evenly among the number of beneficiaries.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage