Which of the following is true regarding a life insurance policy with an 'irrevocable' beneficiary?

Question: Which of the following is true regarding a life insurance policy with an 'irrevocable' beneficiary?

Answer options:

• The policyowner can change the beneficiary at any time without consent.
• The policyowner can take a policy loan without the beneficiary's consent. ✅ The policyowner must obtain the beneficiary's consent to change the beneficiary or access the cash value.
• The death benefit is automatically paid to the estate if the beneficiary is irrevocable.

Correct answer: The policyowner must obtain the beneficiary's consent to change the beneficiary or access the cash value.

Explanation: If the beneficiary is irrevocable, the policyowner cannot exercise certain rights—including taking a policy loan, assigning the policy, or changing the beneficiary—without the written consent of that irrevocable beneficiary. The policyowner still pays the premiums, but their control is restricted.