Which of the following best describes a revocable beneficiary?

A revocable beneficiary is one that can be changed at any time by the policyholder without needing to obtain consent from the beneficiary. This means the policyholder retains full control over the designation, allowing them to adapt to changes in personal circumstances, such as marriage, divorce, or the birth of a child.

This flexibility ensures that the policyholder can keep their estate plan aligned with their wishes, reflecting their latest intentions regarding who should receive the death benefit of the policy. In contrast, a beneficiary that cannot be changed without consent would be termed an irrevocable beneficiary, which restricts the policyholder’s ability to alter the beneficiary designation without the beneficiary's agreement, thus creating a more permanent arrangement.

The other choices indicate either fixed or limited entitlements, which do not accurately capture the nature of a revocable beneficiary's status in the context of life insurance policies.