Irrevocable beneficiary – What is it, definition and concept | 2022

The irrevocable beneficiaries are natural or legal persons who acquire rights or certain economic benefits in accordance with what is established in the insurance contract. Thus, once these people are marked in this category, they can no longer be modified.

This figure does not receive any rights until the insured loss is met. There is only one possibility to change this condition: The consent of the beneficiary named as irrevocable.

Insurance contracts must specify who will be the irrevocable beneficiary, who will be the recipient who will receive the corresponding money. It can coincide with other beneficiaries, whether they are also irrevocable or not.

Parties to the insurance contract

To fully understand what position it occupies and what is the right of the irrevocable beneficiary, we must see the parts that constitute insurance contracts:

  • Insurance company: legal entity that, in exchange for a periodic payment (premium), undertakes to indemnify or make benefits when the insured loss occurs.
  • Insured: is the person who owns the insurance, that is, the person who is protected by the insurance.
  • Taker: it is the person who contracts the insurance, the one who signs the policy and negotiates the conditions and finally is the person who pays the premiums.
  • Beneficiary: person who receives the financial compensation from the insurance company when the insured loss occurs.


The main characteristics of the irrevocable beneficiary are:

  • This beneficiary can be a natural or legal person.
  • The insurance company must have information regarding the relationship between the insured and the final beneficiary.
  • An opposite figure is that of the revocable final beneficiary, whose condition can be modified without the consent of the same, only the will of the policyholder is enough.
  • The condition of irrevocability cannot be modified by the policyholder, it can only be done with the consent of the person named as irrevocable beneficiary.
  • It must be expressly stated in the insurance policy who this beneficiary will be.
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To better understand this type of beneficiary, let’s see an example.

A father wants to take out life insurance and has two children, a daughter and a son. He designates his daughter as beneficiary and his son as irrevocable beneficiary.

Over time, the father and son cut their relationship and the father does not want the son to be the beneficiary. Due to naming him an irrevocable beneficiary, he will not be able to change this beneficiary. On the other hand, if he cuts off his relationship with her daughter and does not want her to be a beneficiary, he can remove her from this position in the life insurance contract.

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