Which statement is true about an irrevocable beneficiary?

An irrevocable beneficiary is a designation that provides certain protections and rights regarding changes to the policy. When a beneficiary is designated as irrevocable, it means that the policy owner cannot change that beneficiary without obtaining the consent of the irrevocable beneficiary. This protects the named beneficiary's interest in the policy proceeds, ensuring they will receive the benefits upon the insured's death unless they agree to the change.

This aspect of requiring consent is crucial because it prevents the policy owner from altering the beneficiary designation arbitrarily, thereby guaranteeing that the irrevocable beneficiary remains entitled to the benefits as long as they are in this status.

The other statements highlighted do not accurately describe the nature of an irrevocable beneficiary. For example, an irrevocable beneficiary does not allow for policy loans without restrictions; the ability to take out loans against the policy typically depends on the insurer's terms and the type of policy. Furthermore, the designation does not have a time limit, as it remains in effect until explicitly revoked with the beneficiary's consent. Lastly, the ability to change a beneficiary is fundamentally restricted under this designation, which is the key distinguishing feature of an irrevocable beneficiary status.