What is the designation of a beneficiary that allows the policyowner to change the beneficiary at any time?

The designation of a beneficiary that allows the policyowner to change the beneficiary at any time is referred to as revocable. When a beneficiary is designated as revocable, the policyowner retains full control over the policy and can modify or replace the beneficiary as desired without needing consent from that beneficiary. This flexibility is significant because circumstances can change—such as marriage, divorce, or changes in relationships—so having the ability to update the beneficiary designation ensures that the policy can reflect the policyowner's current intentions and wishes.

In contrast, an irrevocable beneficiary designation locks the policyowner into that specific beneficiary, requiring their consent for any changes, even if the policyowner wishes to switch to another recipient. Contingent beneficiaries, while important in the structure of a policy, are secondary beneficiaries who receive the benefits only if the primary beneficiary is unavailable. Lastly, the term primary refers to the main beneficiary designated to receive proceeds upon the policyowner's death but does not inherently indicate whether that designation can be changed or not. Thus, revocable beneficiaries uniquely provide the policyowner with the freedom to make future changes as their personal situation evolves.