The term irrevocable beneficiary is primarily used in life insurance. When a life insurance policy has an irrevocable beneficiary or beneficiaries, the policyholder cannot change the beneficiary after the policy has been written.
Some irrevocable beneficiary life insurance policies provide for the changing of the beneficiary, but only with the beneficiary’s consent.
In Switzerland, life insurance is issued under the pillar 3a and the pillar 3b legal designations. The beneficiaries of pillar 3a life insurance policies are stipulated by law (spouse, children, legal heirs). The policyholder cannot select the beneficiary, and the beneficiary is irrevocable.
Pillar 3b life insurance policies may allow for revocable beneficiaries or irrevocable beneficiaries. If the beneficiaries of a pillar 3b life insurance policy are your spouse or children and are irrevocable, the cash value of the policy is protected from seizure during bankruptcy.
More on this topic:
Guide to permanent life insurance
Term life insurance vs. mixed life insurance
Irrevocable trusts explained
