Which statement is TRUE regarding irrevocable beneficiaries?

An irrevocable beneficiary is a person or entity designated to receive benefits from a policy that cannot be changed or removed by the policyholder without explicit consent from the beneficiary. This means that if a policyholder wishes to make any alterations regarding an irrevocable beneficiary, they must obtain written consent from that beneficiary. This provides the beneficiary with a higher level of security, as their right to receive benefits cannot be overridden by the policyholder unilaterally.

This concept is crucial in ensuring that irrevocable beneficiaries have a protected interest in the policy, thus preventing the policyholder from making changes that could affect the irrevocable beneficiary's rights without their agreement. The other statements regarding the changes of irrevocable beneficiaries do not align with this principle, as they suggest that changes could be made more freely, which is inconsistent with the established nature of irrevocability.