What is Beneficiary

Definition: In life insurance, the beneficiary is the person or entity entitled to receive the claim amount and other benefits upon the death of the benefactor or on the maturity of the policy.

Description: Generally, a beneficiary is a person who receives benefit from a particular entity (say trust) or a person. The eligibility to be considered for the benefits is confirmed either as per the specifications in the policy documents or by other legal norms such as that for a legal heir. The insured person is usually asked to mention the name of the beneficiary (who he would like to bestow the insurance proceeds upon his death) at the time of commencement of an insurance policy. There are also provisions for making a contingent beneficiary in case the primary beneficiary is no more or does not qualify the age criteria at that time.

Also See: Insurance, Annualized Premium, Group Policy, Claim Amount, Return, Annuity, Insurable Interest, Insurability