Explained by an Expert: Irrevocable vs Revocable Beneficiary

Posted on September 10, 2019 and updated September 10, 2019 in Life Insurance Canada News 2 min read

I’m going to talk a little bit now about revocable versus irrevocable beneficiaries.

Most life insurance policies have a revocable beneficiary, meaning you can change the beneficiary. You choose who you want to be your beneficiary: if you have a spouse as your beneficiary and you want to change that down the road, you can change that; if you have a child as a beneficiary and you want to change that, you have that same option; or a business partner, whatever the case may be.

Now, an irrevocable beneficiary, which usually isn’t set up and is something you really have to watch out for as a life insurance policy owner, is something where the owner and the beneficiary have to agree to that change. This is sometimes done as part of a divorce settlement or some type of breakup where they want to make sure that that beneficiary is going to stay on the policy and can’t be changed

So that’s something you’re going to want to look at, and if you have questions, you are going to want to make sure you get your responses and that you are clear on what you are signing up for.

 

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