What does the term "irrevocable beneficiary" refer to in a life insurance context?

In the context of life insurance, the term "irrevocable beneficiary" refers to a beneficiary who has a legal right to the proceeds of the policy and must provide consent for any changes to the beneficiary designation by the policyowner. This means that once a policyowner designates someone as an irrevocable beneficiary, they cannot change or remove that beneficiary without obtaining permission. This designation adds a layer of security for the beneficiary, ensuring they will receive the policy benefits upon the insured's death, as long as they remain as the irrevocable beneficiary.

Understanding this concept is crucial because it impacts the control that the policyowner has over the life insurance policy. In contrast, a revocable beneficiary can be changed at any time without the need for the beneficiary's consent, which provides more flexibility for the policyowner but less security for the beneficiary. The correct answer highlights the importance of consent in ensuring that the rights of the irrevocable beneficiary are protected.