In insurance terms, what is a beneficiary?

A beneficiary in insurance refers to an entity, which can be a person, organization, or trust, that is designated to receive the benefits from an insurance policy. This appointment typically occurs in life insurance or health insurance policies, where a specific individual or group is named to obtain proceeds in the event of a claim.

By identifying a beneficiary, the policyholder can ensure that the intended recipients receive financial support when certain events occur, such as the policyholder’s death. This arrangement is crucial for estate planning and can provide financial security to loved ones.

The other options refer to different roles or concepts within the insurance industry. The individual who manages the policy is typically referred to as the policyholder or insured, not the beneficiary. An insurance provider's representative would generally be an agent or broker, not a beneficiary. Lastly, the term "type of insurance coverage" does not pertain to the role or designation of a beneficiary but rather describes the different categorizations within insurance products.