A beneficiary is a person or entity designated to receive the benefits or assets from an insurance policy, will, trust, or retirement account upon the death of the owner. They are the recipient of financial or other advantages.
Beneficiary
Definition
A beneficiary is a person or entity designated to receive the benefits or assets from an insurance policy, will, trust, or retirement account upon the death of the owner. They are the recipient of financial or other advantages.
Example
You name your spouse and children as beneficiaries on your life insurance policy, meaning they will receive the payout if you pass away.
Key Points
- 1Recipient of financial assets or benefits.
- 2Common in life insurance, retirement accounts, wills, and trusts.
- 3Can be primary (first in line) or contingent (receive if primary cannot).
- 4Important to keep designations updated.
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