What is the impact of an irrevocable beneficiary on the policyowner's rights?

The correct choice highlights that an irrevocable beneficiary is granted certain rights that protect them from changes to the policy without their consent. This means that once a policyholder designates someone as an irrevocable beneficiary, they cannot alter the beneficiary designation or take specific actions, such as cashing in the policy or borrowing against its value, without obtaining consent from that beneficiary.

This establishes a protective measure for the beneficiary, ensuring that their entitlement to the benefits of the policy remains intact regardless of any changes the policyholder may wish to implement. It signifies a level of security for the beneficiary, making their claim to the proceeds more definitive.

The other options do not accurately reflect the implications of having an irrevocable beneficiary. The ability to change a beneficiary is fundamentally restricted if that beneficiary is irrevocable. Furthermore, even though the policyowner may have the right to take loans against the cash value of the policy, the presence of an irrevocable beneficiary can impose limitations on this right, as such actions could diminish the amount available to the beneficiary. Lastly, the statement regarding spouses and remarriage does not pertain to the concept of an irrevocable beneficiary, as beneficiaries’ rights are independent of marital status changes in the policyowner's life unless specifically stipulated in a divorce or