Rhode Island Life Insurance Practice Exam

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What is a revocable beneficiary?

  1. A beneficiary that cannot be changed

  2. A beneficiary with a permanent interest in the policy

  3. A beneficiary that can be changed at any time by the policyowner

  4. A beneficiary that requires consent to change

The correct answer is: A beneficiary that can be changed at any time by the policyowner

A revocable beneficiary is one that can be changed at any time by the policy owner without needing to obtain consent from the beneficiary. This flexibility allows the policy owner to adapt the life insurance policy as their circumstances and intentions change, such as in response to changes in relationships, financial situations, or family dynamics. In contrast, a non-revocable beneficiary would require the consent of the beneficiary to make any changes, thereby giving the beneficiary a permanent and secured interest in the policy. Understanding the difference between revocable and non-revocable beneficiaries is crucial for policyowners as they manage their life insurance coverage and estate planning strategies.

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