An individual purchases a life insurance policy and lists his parents as the beneficiaries. What type of beneficiary designation does the policy have?

In the scenario where an individual purchases a life insurance policy and lists his parents as beneficiaries, the most accurate classification for this beneficiary designation is revocable. A revocable beneficiary designation allows the policyholder to change the beneficiaries at any time during their lifetime without needing the consent of the current beneficiaries. This flexibility is essential for many policyholders, as circumstances can change over time, such as marital status, financial dependencies, or changes in family dynamics.

In contrast, an irrevocable beneficiary designation would lock in the named beneficiaries, preventing the policyholder from making any changes without their consent, which is not applicable in this case. A contingent beneficiary is someone designated to receive the benefits only if the primary beneficiary is unable to do so, which does not apply here as the parents are directly listed. While the primary beneficiary designation refers to the first in line to receive benefits upon the insured’s passing, the specification of parents alone does not inherently classify them as either primary or contingent without further context regarding whether there are multiple beneficiaries or additional designations.

Thus, the designation of the parents as beneficiaries can indeed be classified as revocable, giving the policyholder significant leeway to make adjustments if needed.