An irrevocable beneficiary is a natural or legal person designated to receive assets under a life insurance policy or segregated fund agreement.
An irrevocable beneficiary is a more ironclad version of a beneficiary. Their rights are guaranteed and they often have to approve any change in policy.
Irrevocable beneficiaries cannot be removed after their appointment unless they agree to it, even if they are divorced.
Children are often called irrevocable beneficiaries to secure their inheritance or to secure child support payments.
The appointment of an irrevocable beneficiary may also have advantages in estate planning, especially if the insurance policy is in an irrevocable trust.
Death benefit is a payment to the recipient of a life insurance policy, an annuity or pension in the event of the death of the insured or the recipient of the annuity.
Reducing term insurance provides a death benefit that decreases each year according to a predetermined schedule, whereby premiums also decrease over time.
The free review period is a required period of time, usually 10 days or more, during which a new life insurance policy holder can terminate the policy without penalty such as restocking fees.
A group universal life policy is a universal life insurance offered to a group of people at a lower price than what is usually offered to an individual.
Living together payment is a payment structure for pensions and other retirement plans that provides income to a second person, usually a spouse, after the death of the account holder.
Level premium insurance is a type of life insurance in which premium payments remain at the same level throughout the entire term, and the amount of coverage offered increases.