What Does Revocable Beneficiary Mean?

The term refers to the policy owner’s ability to change the policy’s beneficiary, who is the person intended to receive the compensation provided by the contract. Moreover, the revocable character of a policy also means that the policy owner can easily close the policy without having to ask first the current beneficiary. Most life insurance policies have this feature in order to support and defend the rights of the policy owner.

The opposite of the ‘revocable beneficiary’ is the ‘irrevocable beneficiary’, which refers to a beneficiary whose indemnification cannot be changed without getting his or her consent.

Revocable Beneficiary Explained

Most of the times the more flexible revocable beneficiary used on a policy is a better option as it gives you a chance to change the person of the beneficiary who belongs to the policy. The need to change the beneficiary may occur frequently due to the change in some personal or other circumstances.

One should know that changing the beneficiary is much harder in case of an irrevocable policy as first the policy’s current beneficiary must agree with the change.