When the owner of a life insurance policy reserves the right to change the beneficiary,...

Beneficiary designation concepts.

Life insurance policies allow the owner to name beneficiaries who receive proceeds at death.

Revocable vs. irrevocable designations.

A revocable beneficiary can be changed by the policyowner at any time without the beneficiary’s consent.

An irrevocable beneficiary cannot be changed without the beneficiary’s written consent.

Evaluate each option.

A. Contingent designation

Refers to a secondary beneficiary, not the right to change.

B. Irrevocable designation

Opposite of the described situation.

C. Contestable designation

Not a valid beneficiary term.

D. Revocable designation

Correct. This allows the policyowner to change beneficiaries.

Maryland relevance.

Maryland recognizes revocable beneficiary designations unless the policy specifically states otherwise.

Conclusion.

Reserving the right to change beneficiaries is a revocable designation.