The person named to receive insurance proceeds is called what?

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Study for the General Financial Literacy State Test. Prepare with flashcards and multiple-choice questions, each with hints and explanations. Enhance your financial expertise for success!

Multiple Choice

The person named to receive insurance proceeds is called what?

Explanation:
In life insurance, the person named to receive the proceeds is the beneficiary. The beneficiary is designated by the policyowner and will receive the death benefit when a claim is paid. The policyowner is the person who owns the policy and controls its terms, including naming or changing the beneficiary. The insured is the person whose life is covered by the policy, and the premium payer is the one who pays the premiums. If no beneficiary is named, the proceeds may default to the insured’s estate or follow the policy’s terms and applicable law.

In life insurance, the person named to receive the proceeds is the beneficiary. The beneficiary is designated by the policyowner and will receive the death benefit when a claim is paid. The policyowner is the person who owns the policy and controls its terms, including naming or changing the beneficiary. The insured is the person whose life is covered by the policy, and the premium payer is the one who pays the premiums. If no beneficiary is named, the proceeds may default to the insured’s estate or follow the policy’s terms and applicable law.

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