What is the primary characteristic of an irrevocable beneficiary in a life insurance policy?

The primary characteristic of an irrevocable beneficiary in a life insurance policy is that the beneficiary has a vested interest in the policy. This means that once the insured designates someone as an irrevocable beneficiary, that person has a legal right to the policy's benefits and cannot be changed or removed without their consent.

This characteristic protects the beneficiary’s interests and establishes their right to the benefits upon the death of the insured, ensuring that the insured cannot make decisions that would negatively impact the irrevocable beneficiary's entitlement without first obtaining their agreement. In practice, this designation is used when the insured wants to guarantee that a specific individual receives the policy proceeds, adding an extra layer of security to their financial planning.