What is the purpose of a revocable beneficiary?

The purpose of a revocable beneficiary is to give the policyholder the flexibility to change the designated beneficiary at any time as circumstances in their life change. This means that if the policyholder wishes to alter who will receive the death benefits from their life insurance policy, they can do so without requiring consent from the current beneficiary. This feature is important because it allows the policyholder to reflect changes in relationships, such as marriage, divorce, or the birth of a child, ensuring that the benefits are directed according to their current intentions and needs. This flexibility is fundamental for effective financial planning and ensures that the policyholder retains control over the distribution of their policy's benefits.