ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: In life insurance, the beneficiary is the person or entity entitled to receive the claim amount and other benefits upon the death of the benefactor or on the maturity of the policy.

Detailed explanation-2: -But if your primary beneficiary dies before you do, then the death benefit would be paid to any contingent beneficiaries that you named on your application. If there are no contingent beneficiaries, then the death benefit will most likely be paid directly into your estate.

Detailed explanation-3: -If you and your beneficiary die at the same time (for example, you and your spouse are both in a fatal car accident), the death benefit will either go to your primary beneficiary’s estate or your contingent beneficiary, depending on the timing of the primary beneficiary’s death.

Detailed explanation-4: -The beneficiary is the true heir to the policy proceeds, after the demise of the policyholder. A beneficiary can be a person who is insured (in case it’s a money-back or endowment policy), proposer, or his nominee or assignee or someone who has been proved to be an executor or administrator.

Detailed explanation-5: -A beneficiary is the person or entity you name in a life insurance policy to receive the death benefit. You can name: One person. Two or more people.