What type of designation must a policy owner choose to make a beneficiary change permanent on a life insurance policy?

To ensure a beneficiary change is permanent on a life insurance policy, the policyowner must choose an irrevocable designation. An irrevocable beneficiary cannot be changed or removed without the consent of that beneficiary. This means that once a policyowner names an irrevocable beneficiary, they relinquish the right to alter that designation unilaterally. This protects the beneficiary's right to the policy benefits, providing them with a guaranteed claim to the proceeds after the insured's death.

In contrast, a revocable beneficiary designation allows the policyowner to change the beneficiary at any time without needing permission from the current beneficiary. This flexibility is beneficial for policyowners who may wish to update their beneficiary designations based on changing life circumstances but does not provide the same security to the named beneficiary.

Conditional and contingent designations refer to other terms in insurance policies but are not specifically linked to the permanence of beneficiary changes. Conditional designations often relate to the policy being in effect under specific circumstances, while contingent designations specify a secondary beneficiary only claiming benefits if the primary beneficiary is unable to do so. Neither of these options provides the permanence that an irrevocable designation affords.