What does it mean for a beneficiary to be revocable?

A revocable beneficiary designation means that the policyowner retains the right to change or remove the beneficiary at any time without needing permission from the existing beneficiary. This flexibility allows the policyowner to make alterations in response to life changes, such as marriage, divorce, or changes in financial circumstances.

Understanding this concept is crucial in insurance planning, as it ensures that the policyholder can adapt their insurance policy to better reflect their current intentions and relationships. A revocable beneficiary differs significantly from an irrevocable beneficiary, where any changes would require the consent of the named individual. Thus, the ability of the policyowner to alter the beneficiary designation is key in providing financial security and ensuring that the insurance proceeds go to the intended recipient.