Beneficiary

A beneficiary is a person or entity designated to receive benefits or assets from another individual’s plans or agreements, such as a will, insurance policy, or trust. For example, if someone passes away and has a life insurance policy, the beneficiary would be the individual named to receive the payout. Beneficiaries can be family members, friends, or organizations, and their designation ensures that assets are transferred according to the individual’s wishes, providing financial support or resources after their death. Understanding who is named as a beneficiary is crucial for effective financial and estate planning.