Under which beneficiary designation are a policy owner's rights limited?

The designation of an irrevocable beneficiary is significant because it places limitations on the policy owner's rights concerning the policy. When a beneficiary is designated as irrevocable, the policy owner cannot change the beneficiary without the consent of that beneficiary. This means that the irrevocable beneficiary has certain rights to the policy that cannot be altered at the discretion of the policy owner alone. This designation is often used to provide security for beneficiaries, ensuring that they are guaranteed to receive the policy benefits upon the policyholder's death.

In contrast, revocable beneficiaries allow the policy owner to change the beneficiary at any time without the need for consent. Contingent beneficiaries are secondary beneficiaries who only receive death benefits if the primary beneficiary is deceased or cannot be found. Primary beneficiaries are the first in line to receive benefits upon the policy owner's death but do not limit the rights of the policy owner like an irrevocable designation does.