There are two types of beneficiary designation:

The first, a revocable designation meaning the insured can change the beneficiary on his or her policy at any time. This is the most common type of beneficiary designation.

The second, an irrevocable designation, meaning the insured has given up his or her right to change the person or people named as the beneficiary. In effect, an irrevocable designation would make both the insured and the beneficiary joint owners in the insurance policy.

An irrevocable beneficiary designation is often seen where there has been a divorce and the spouse wants to ensure that the family will always be protected therefore making it impossible for the insured to change the beneficiary designation if he or she re-marries, starts a new family or tries to use the beneficiary clause as some sort of negotiating item.

If you would like more information regarding beneficiary designation, please contact us.