Revocable Beneficiary

In insurance, a revocable beneficiary is a beneficiary of a life insurance policy or annuity contract whose designation as a beneficiary can be changed by the policy owner or contract holder at any time without the beneficiary's consent. This means that the policy owner has the flexibility to change the beneficiary designation if their circumstances change or if they want to leave the death benefit to someone else.

Here are some key features of a revocable beneficiary:

• The policy owner has the right to change the beneficiary designation at any time without the consent of the current beneficiary.
• The revocable beneficiary has no vested interest in the policy or contract and does not have any rights to the benefits until the policy owner dies.
• If the policy owner does not designate a beneficiary or if the designated beneficiary dies before the policy owner, the death benefit will be paid to the policy owner's estate.
• A revocable beneficiary designation can be used in both individual and group life insurance policies and annuity contracts.

For example, suppose John has a life insurance policy and names his wife, Jane, as the revocable beneficiary. If John later divorces Jane and marries someone else, he can change the beneficiary designation to his new spouse or to another person without Jane's consent. If John dies while Jane is still the designated beneficiary, she will receive the death benefit. However, if John later changes the beneficiary to his new spouse and dies before changing it back to Jane, the new spouse will receive the death benefit instead.