What defines a "revocable beneficiary" in a life insurance policy?

A revocable beneficiary in a life insurance policy is characterized by the policyholder's ability to change the designated beneficiary without needing that person's consent. This means the policyholder retains control and flexibility over who will ultimately receive the policy benefits upon their passing. The policyholder can update or alter the beneficiary designation at any time, reflecting changes in personal circumstances or relationships, such as marriage, divorce, or the birth of a child.

This feature contrasts with an irrevocable beneficiary, where any changes to the beneficiary designation require the agreement of the current beneficiary. Understanding the distinction between revocable and irrevocable beneficiaries is critical for policyholders as it directly impacts their control over the insurance proceeds and the financial planning strategy they may wish to employ.