Beneficiary

Beneficiary A beneficiary in insurance is the person or entity that is designated to receive the benefits of an insurance policy. In life insurance, the beneficiary is typically the person or persons who will receive the death benefit when the insured person dies. In health insurance, the beneficiary is typically the person who is covered by the policy. Here are some examples of beneficiaries: Spouse, children, parents, Siblings, business partne, Key employee, trust, Charitable organization. If you do not name a beneficiary for your insurance policy, the benefits will typically be paid to your estate. This means that the benefits will be subject to probate and may be used to pay off your debts. When choosing a beneficiary, it is important to consider the following factors: -The relationship between the beneficiary and the insured person. -The beneficiary's financial needs. -The beneficiary's age and health. -The beneficiary's ability to manage the benefits. For example; when you purchase a life insurance policy, you choose the beneficiary of the policy. Your beneficiary may be, for example, a child or a spouse. The difference between an insured and a beneficiary is that the insured is the one who has or is covered by an insurance policy. The beneficiary is the person who receives the insurance proceeds from a life insurance policy or annuity. It also can refer to someone who receives benefits from a health insurance policy such as payments for a health care service. While you may think you can have anyone as a beneficiary, you can not. A beneficiary must have an insurable interest. It means that person or entity, as a beneficiary, would face financial hardship upon your death. Example a child, spouse, parent. A boyfriend or girlfriend can not be your beneficiary by law in this context. If you are unsure who to name as your beneficiary, you can speak to an insurance agent or financial advisor for help. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful