What Is a Beneficiary in Insurance

While looking into life insurance, you have certainly come across the term beneficiary.  It is one of the most important aspects of life insurance and is crucial to how life insurance works.  So, what exactly is the definition of a beneficiary?

A beneficiary, simply put, is a person designated to receive finances, often in the event of someone’s death.  While a beneficiary can be named on things like bank records or a retirement account, they are most commonly named on a life insurance policy.

In insurance, “beneficiary” means the person set to receive the amount of money in your policy.  In life insurance, a beneficiary most commonly means the person designated to receive the money after your death.  So who can be your beneficiary?  Well, it’s often a family member, such as your spouse or your children, but it can be anyone.  It can even be a charity or business.  If you assign a family member as your beneficiary, then they can then use that money to make up for lost income or pay for funeral expenses, granting them greater financial peace of mind after the death of a loved one.

If you would like help navigating the search for life insurance, or answering questions such as what a beneficiary is, give AZ Insurance team a call.  As an Arizona-based insurance broker, we can do the shopping for you and find the best policy for your needs and budget.  We hope to hear from you soon!

Disclaimer: Coverage will vary based on state, insurance company, and type of policy