If an insured designates a specific person as the irrevocable beneficiary of a life insurance policy, does the person so designated acquire a vested interest in the policy?
Yes. However, the exact nature of that interest depends on the terms of the policy. It is more common for the irrevocable beneficiary to be conditionally vested. This means that the interest in the contract returns to the insured should the beneficiary die first. This arrangement puts everyone on an even keel: the insured and beneficiary are joint owners and neither can exercise any rights or dispose of the policy without the other's consent.
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