Beneficiary
/ben-uh-FISH-ee-air-ee/
The person who receives the insurance payout.
Definition
A beneficiary is the person or entity designated to receive the death benefit from a life insurance policy. You can name primary beneficiaries (first in line) and contingent beneficiaries (if primary can't receive it). Beneficiaries can be individuals, trusts, or organizations.
Example
Sandra named her husband as primary beneficiary and her children as contingent beneficiaries.
More Life Insurance Terms
Coverage for a specific period with no cash value.
Permanent coverage with guaranteed cash value.
Flexible permanent coverage with adjustable premiums.
The amount paid to beneficiaries when the insured dies.
The savings component of permanent life insurance.
The stated amount of coverage on a life insurance policy.
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