What type of beneficiary designation allows ownership rights to remain with the policyowner?

The chosen answer, which refers to a revocable beneficiary, highlights a key aspect of beneficiary designations in life insurance policies. When a beneficiary is designated as revocable, the policyowner retains the authority to change or remove the beneficiary at any time without needing the consent of the current beneficiary. This flexibility allows the policyowner to maintain control over the policy and its benefits, which can be essential for adapting to changes in personal circumstances, such as marriage, divorce, or the desire to specify new beneficiaries after changes in relationships.

In comparison, an irrevocable beneficiary designation does not permit the policyowner to alter the beneficiary without their consent. This means that ownership rights over the policy benefits are effectively restricted as long as the beneficiary designation remains in place.

Understanding the distinction between these types of beneficiary designations is essential for anyone dealing with life insurance policies, as it directly impacts the control the policyowner has over their policy and the benefits. Additionally, contingent beneficiary designations come into play if the primary beneficiary predeceases the policyowner or cannot be found, while the primary beneficiary simply refers to the first in line to receive benefits upon the policyholder's death. However, neither of these designations carries the same implications regarding ownership rights as the revocable beneficiary