Who is referred to as a beneficiary in a life insurance policy?

In a life insurance policy, a beneficiary is specifically defined as the person or entity that is designated to receive the death benefit upon the passing of the insured individual. This designation is a crucial aspect of life insurance because it ensures that the financial support intended by the policyholder goes to the right recipient, often providing financial security for dependents or fulfilling specific financial obligations.

While the insured person is the one whose life is covered by the policy, they do not automatically receive the death benefit; it is instead paid to the beneficiary. The roles of the insurance agent and the underwriter are related to the administrative and underwriting processes of the insurance but do not pertain to receiving death benefits. Thus, identifying a beneficiary accurately is essential in ensuring that the intended financial outcomes are achieved following the insured's death.