If a life insurance policyowner names their spouse as the "irrevocable" beneficiary, what is true?

When a life insurance policyowner designates their spouse as an irrevocable beneficiary, it creates a situation where the beneficiary's rights are safeguarded. This means that the policyowner cannot change the beneficiary designation without the spouse’s written consent. Therefore, in this context, if the policyowner wants to change the beneficiary or take a loan against the policy’s cash value, they must obtain written permission from the irrevocable beneficiary, which ensures that the spouse’s rights are protected even if the policyowner wishes to make changes later.

The other options do not align with the characteristics of an irrevocable beneficiary designation. For instance, while a policyowner maintains their policy ownership, the irrevocability restricts their ability to make unilateral changes to the beneficiary, such as modifications or loans on the policy, without the agreement of the irrevocable beneficiary. The rules regarding marital status and beneficiary rights are also different and would not result in an automatic loss of rights due to divorce unless specific provisions were included in the policy or state law dictated such outcomes. Each of these nuances underscores the importance of the irrevocable designation and the rights it confers to the named beneficiary.