Question

A policy owner's rights are limited under which beneficiary designation.

A) Primary beneficiary.
B) Contingent beneficiary.
C) Irrevocable beneficiary.
D) Revocable beneficiary.

Answer 1

A policy owner's rights are most limited under an irrevocable beneficiary designation, as it requires the beneficiary's consent to make changes.

Step-by-step explanation:

A policy owner's rights are limited under the designation of an irrevocable beneficiary. Unlike a revocable beneficiary, where the policy owner can change the beneficiary without the beneficiary's consent, an irrevocable beneficiary designation means that the policy owner cannot change the beneficiary without the irrevocable beneficiary's consent. This designation is often used to provide a guarantee to the beneficiary that they will receive the benefits of the policy.