Revocable Beneficiary

AAA

DEFINITION of 'Revocable Beneficiary'

The ability of a policy owner either to change who will receive the compensation from his or her policy or to terminate the policy without having to get consent from the current beneficiary. Most life insurance policies have this feature.

This is the opposite of an "irrevocable beneficiary".

INVESTOPEDIA EXPLAINS 'Revocable Beneficiary'

A revocable beneficiary on a policy is usually the best course of action, as it allows you to change the beneficiary on the policy should certain circumstances change. It is harder to change the beneficiary on an irrevocable policy because it requires the consent of the current beneficiary.

RELATED TERMS
  1. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  2. Life Insurance

    A protection against the loss of income that would result if ...
  3. Segregated Fund

    A type of pool investment that is similar to a mutual fund, but ...
  4. Contract Holder

    An individual or organization who owns the rights to a debt or ...
  5. Irrevocable Beneficiary

    A beneficiary in a life insurance policy or segregated fund contract ...
  6. Noncancellable Insurance Policy

    A life or disability insurance policy that an insurance company ...
Related Articles
  1. Retirement

    Designating A Trust As Retirement Beneficiary

  2. Home & Auto

    Long-Term Care Insurance: Who Needs ...

  3. Insurance

    Life Insurance: Putting A Price On Peace ...

  4. Retirement

    Mistakes In Designating A Retirement ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center