Final answer:
The owner of a policy with an irrevocable beneficiary designation can only change or revoke the beneficiary with the written consent of the beneficiary. This ensures the irrevocable beneficiary's rights are protected, and any changes to the policy affecting them cannot be made unilaterally by the owner.
Step-by-step explanation:
The correct answer to the question regarding the owner's rights if an irrevocable beneficiary is designated is option 4) The owner can only change or revoke the designation of the beneficiary with written consent.
An irrevocable beneficiary has certain rights to the benefits that cannot be changed without their consent. When an owner names an irrevocable beneficiary, the owner essentially waives their right to make changes to this designation without the irrevocable beneficiary's permission. This includes changing the beneficiary, revoking the beneficiary, or altering the policy in ways that would affect the benefits of the irrevocable beneficiary.
By contrast, if a beneficiary is named as 'revocable,' the policy owner may change or remove the beneficiary without needing anyone's consent. Understanding the distinction between irrevocable and revocable beneficiaries is crucial when managing insurance policies or estate planning to ensure that an individual's wishes are followed.