North Carolina Life Agent Practice Exam

If J wants to maintain the right to change beneficiaries on a life insurance policy, he should select a revocable beneficiary designation. This type allows the policyholder to alter the beneficiary at any time without needing the consent of the current beneficiary.

In contrast, an irrevocable beneficiary designation locks in a specific individual as the beneficiary, preventing the policyholder from making changes to the beneficiary without the irrevocable beneficiary's consent. This type of designation offers greater security for the beneficiary but limits the policyholder's flexibility.

Contingent beneficiaries are secondary beneficiaries who receive the policy benefits only if the primary beneficiary is deceased at the time of the insured's passing. While they are important for estate planning, they do not relate to the policyholder's ability to change beneficiaries.

A primary beneficiary is the first in line to receive the benefits upon the policyholder's death but does not inherently confer any rights regarding changes to the beneficiary designation itself. Thus, the key factor of maintaining the right to change beneficiaries makes a revocable designation the appropriate choice for J.