Awhile ago, we discussed what is accidental benefit and what is insurance. Today, we have to define the meaning of beneficiary by using reliable source and dictionary.
An insurance agent and the one who is buying a life insurance should know the meaning and definition of “beneficiary”. The word beneficiary came from the word “benefits”. When buying life insurance, there is a thing called “benefits”. The benefits that a policy holder can get is that “his beneficiary will receive a specified amount of money – the face amount” if the insured individual died.
According to Beiks Pocket Dictionary, the word “beneficiary” is
“the designation by the owner of a life insurance policy that indicates who will receive the proceeds upon the insured’s death when a policy endowment matures”.
The policyholder has the rights to choose who is his beneficiaries. He may choose his spouse or kids or even his parents. The policy holder should inform the beneficiaries about the use of a life insurance policy. The insurance policy should be kept safely.
Other Related Terms:
Benefits – a monetary sum payable by the insurance company to a claimant assignee, or beneficiary.
Benefit Period – the period of time which an insurance company pays benefits to the named insured or dependents.
What is an Insurance Premium – the amount of money to pay for the insurance coverage. The policy holder pays the insurance premium periodically to renew the insurance policy.
Note: To know more insurance terminologies, please go to our insurance knowledge- based section
Citations and Reference: Beiks Pocket Dictionary
That’s the meaning of beneficiary. Please always visit Insurance Section (InvestmentTotal.com/Insurance) – to get more knowledge about life insurance and different insurance terminologies used in buying and selling insurance. Share this page with your friends and do not forget to leave a comment.