Who is the person designated to receive the policy benefits?

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Multiple Choice

Who is the person designated to receive the policy benefits?

In life insurance, the person who receives the payout designated by the policy owner is the beneficiary. The beneficiary is the individual, trust, charity, or other entity named to receive the death benefit when the insured dies (or other benefits if specified). The death benefit is the amount paid, not the recipient, which is why the term beneficiary is the correct focus here. Fraud is illegal deception, and indemnity is the principle that insurance should reimburse only losses, not identify who gets the payment. Policy owners can name one or more beneficiaries (primary and contingent) and can change them, and if no beneficiary is named, the proceeds may go to the insured’s estate.

In life insurance, the person who receives the payout designated by the policy owner is the beneficiary. The beneficiary is the individual, trust, charity, or other entity named to receive the death benefit when the insured dies (or other benefits if specified). The death benefit is the amount paid, not the recipient, which is why the term beneficiary is the correct focus here. Fraud is illegal deception, and indemnity is the principle that insurance should reimburse only losses, not identify who gets the payment. Policy owners can name one or more beneficiaries (primary and contingent) and can change them, and if no beneficiary is named, the proceeds may go to the insured’s estate.

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