Which plan ensures that upon the death of the insured, the policy proceeds go directly to a designated beneficiary without going through their estate?

The correct answer is the irrevocable beneficiary plan because it designates a specific beneficiary who must receive the policy proceeds upon the death of the insured, and those proceeds do not go through the insured's estate. By naming a beneficiary as irrevocable, the policy owner cannot alter or remove this beneficiary without their consent. This characteristic protects the beneficiary’s right to receive the death benefit and ensures that the funds are distributed directly to them, thus avoiding probate, which can delay access to funds and increase costs.

In contrast, a revocable beneficiary plan allows the policyholder to change the beneficiary at any time, which could potentially introduce the risk of the proceeds being subject to estate claims or probate proceedings. Term life insurance and whole life insurance are types of life insurance policies that provide death benefits, but the critical distinction in this context is the mechanism of how proceeds are distributed upon the insured's death, making the irrevocable beneficiary plan the correct choice for ensuring direct transfer to the designated beneficiary.