What is the term used for a person designated to receive the benefits of a life insurance policy?

The term "Beneficiary" specifically refers to the individual or entity designated to receive the death benefits from a life insurance policy upon the passing of the insured person. This designation is a key aspect of life insurance policies, ensuring that the benefits are passed to the chosen beneficiary, which could be a family member, a friend, or even a charitable organization.

The importance of clearly identifying a beneficiary in a life insurance policy is crucial because it determines who will receive the financial support intended for them after the insured's death, making it a vital part of estate planning. The selection can also influence tax implications and access to funds, further underscoring the strategic role of the beneficiary in the overall insurance framework.

Understanding the roles of the other terms can help clarify why they do not fit this specific definition. The "Insured" is the person whose life is covered by the insurance policy. The "Policyholder" is the individual who owns the policy and pays the premiums, which isn't necessarily the same as the insured. A "Dependent" refers to an individual who relies on another for financial support, often connected to the insured’s policy but not designated to receive the insurance benefits.