ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Beneficiary means the person whom the policyholder has appointed to receive the guaranteed death benefit of their life insurance policy. It is the person who is entitled to receive the benefits of the policy. A beneficiary can be anyone who has a financial interest in your life.

Detailed explanation-2: -What is a beneficiary? A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. For life insurance coverage, that is the death benefit your policy will pay if you die.

Detailed explanation-3: -Your primary beneficiary is the first person you want to receive the benefit from your life insurance policy when you pass away. Your contingent beneficiary, or secondary beneficiary, will receive the benefit if your primary beneficiary can’t or won’t.

Detailed explanation-4: -A primary beneficiary is the person (or people or organizations) you name to receive your stuff when you die. A contingent beneficiary is second in line to receive your assets in case the primary beneficiary passes away. And a residuary beneficiary gets any property that isn’t specifically left to another beneficiary.

Detailed explanation-5: -Also known as a living benefit rider, this benefit is often used to pay for expenses while you need medical care.