All of the following can limit the ability to change a beneficiary EXCEPT

• A. an irrevocable beneficiary designation.
• B. collateral assignment of the policy.
• C. a court-ordered divorce decree.
• D. a minor revocable beneficiary.

Answer: (D)

The ability to change a beneficiary on a life insurance policy is affected by whether the designation is revocable, and whether third parties have rights in the policy.

An irrevocable beneficiary designation restricts changes because you need the irrevocable beneficiary’s consent to alter or remove that beneficiary. A collateral assignment creates a creditor’s interest in the policy proceeds, which can limit changes to protect the lender’s claim. A court-ordered divorce decree can also constrain changes, often directing who must be named or removed as beneficiary and preventing unilateral modification without court action.

Naming a minor as a revocable beneficiary, however, does not limit your ability to change the beneficiary. Revocable means you retain control and can designate someone else at any time; the minor status mainly affects how the proceeds are managed for the minor (often via a custodian or trust) but does not stop you from changing the designation.