Montana Health Insurance Practice Exam 2025 - Free Health Insurance Practice Questions and Study Guide

When an irrevocable beneficiary is named in a life insurance policy, their consent is required for any changes to the beneficiary designation. This is because an irrevocable beneficiary is granted certain rights to the policy, which means they cannot be replaced or removed without their agreement. The essence of their status is built on the idea that the insured cannot unilaterally alter the agreement established in the policy without acknowledging the interests of the irrevocable beneficiary.

In such cases, the insured must obtain written consent from the irrevocable beneficiary to accept any amendments or substitutions, ensuring that the rights of the beneficiary are protected and acknowledged. This requirement safeguards against potential disputes regarding changes that could impact the financial outcome for the irrevocable beneficiary, since they have an established claim to the benefits outlined in the policy.

The other options, while they may seem reasonable in different scenarios involving flexible beneficiaries, do not apply to an irrevocable beneficiary situation, which centers on the necessity for that beneficiary's consent.