What is a Beneficiary?

Answer:
Technically, a beneficiary is any person who

receives benefit from something. In a financial sense, a beneficiary usually refers to someone that receives a benefit from an insurance policy, will, or trust. This benefit is usually monetary. Choosing the right beneficiary for your life insurance policy is important.

For example, if you have a life insurance policy specifying your spouse as the beneficiary, if you pass away with that life insurance intact your spouse will receive the financial benefit from that policy. Also, if you are listed as the beneficiary on someone’s life insurance policy you will receive the amount of that person’s policy if that person passes away, making you the beneficiary.


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