IIAP Ordinary Life (OL) Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success!

An irrevocable beneficiary is a designated beneficiary on a life insurance policy whose interest in the policy cannot be altered or revoked by the policyholder without their consent. This means that once you name an irrevocable beneficiary, you cannot change them or remove them from the policy unless you obtain permission from that beneficiary. This provides a level of security and assurance to the beneficiary, as it guarantees that they will receive the death benefit regardless of any future changes the policyholder might want to make.

By contrast, a revocable beneficiary can be changed at any time by the policyholder without the need for consent, which provides flexibility but less security for the beneficiary. The other options do not accurately reflect the nature of irrevocable beneficiaries, as they either suggest flexibility or misrepresent the benefits received from the policy. Therefore, the requirement of consent to alter the beneficiary designation is what makes the statement about irrevocable beneficiaries true.