Which of the following types of beneficiaries does not need to be irrevocable in a segregated fund?

In the context of segregated fund policies, the designation of beneficiaries can vary in terms of their irrevocability. An irrevocable beneficiary is one whose consent is needed for the policyholder to make changes to the policy or to receive any benefits from it, such as cashing it in or transferring it.

When considering the types of beneficiaries, a spouse is often designated as a preferred beneficiary, and many policies allow for this designation to be revocable. This means that the policyholder can change the beneficiary designation without needing the spouse's consent. The essence of this flexibility is rooted in the fact that spousal relationships are often considered more stable and less prone to conflict regarding beneficiary designations compared to other relationships.

On the other hand, designating a friend, business partner, or corporation as a beneficiary typically implies a more transactional relationship where the policyholder might want to retain control over changes to the beneficiary. Therefore, these designations are often set as irrevocable to protect the interests of those beneficiaries and ensure that they receive their entitled benefits without being subject to changes by the policyholder without their consent.

This fundamental understanding of beneficiary designations in segregated funds clarifies why a spouse can be a revocable beneficiary while friends, business partners, and corporations typically