What characterizes an irrevocable beneficiary?

An irrevocable beneficiary is characterized by the requirement that the insured cannot change the beneficiary or borrow against the policy without the express consent of the beneficiary. This means once an irrevocable beneficiary is named, the insured gives up some control over the policy in terms of making future changes, ensuring that the beneficiary has a secured interest in the policy. This designation is often used to protect the interests of the beneficiary, providing them with assurance that they will receive the benefits as outlined in the policy.

In contrast, other options imply a level of flexibility or control over the policy that does not apply to an irrevocable beneficiary situation. For instance, the insured does not have the ability to change the beneficiary freely (as stated in the first choice) or maintain full control over the policy independently of the beneficiary's interests (as noted in the second choice). The fourth choice focuses on the immediate distribution of funds, which while relevant to beneficiaries in general, does not pertain to the specific characteristics of an irrevocable beneficiary.