Beneficiary

★

Rated by 0 readers

Definition

In insurance, the beneficiary is the person or people entitled to receive the claim amount and other benefits of the insurance policy at the time of death of the policyholder or at the end of the policy term.

Description

The eligibility to get the claim benefits is determined either by the conditions in the policy papers or by other legal standards. When an insurance plan is issued, the policyholder should specify the name of the beneficiary. There are additional procedures for naming a beneficiary if the original beneficiary is no longer alive or does not meet the age limits at that time.

In most cases, the beneficiary would be the policyholder’s wife or kids. In other instances, it can be any kind of charity, your company, some other relatives in the family, or multiple beneficiaries.

Example

Rohit purchased a term plan with a policy term of 20 years. He declared his wife Sudha as the beneficiary under the policy. After paying the premium for 10 years, Rohit died. The insurance company paid the benefits to the beneficiary who in this case will be Sudha.

How much helpful you found for you?

Rated by 0 readers

Don’t forgot to share helpful information in your circle

Back to Insurance Dictionary

Newly Added Terms

Newly Added Terms on Insurance Dictionary

Death Benefit

Insurability

Key Employee or Keyman

Insurer

Most Appreciated Terms

Most appreciated Terms on Insurance Dictionary

Guaranteed income with Lumpsum benefit

Buy ABSLI Nishchit Aayush Plan now

BUY ONLINE

Buy ₹ 1 Cr Term Cover @Rs.492/month
for Salaried Individuals¹

Name

*Min 3 characters

+91 Phone Number phone

*Please enter a valid 10 digit Mobile No.

I agree to the Terms of Usage and Privacy Policy and by submitting my contact details here, I override my NDNC registration and authorize ABSLI and its authorized representatives to contact me by phone/e-mail/SMS/WhatsApp for further assistance and information about this proposal and resulting insurance policy.

Buy ₹1 Crore Term Cover @ @Rs.492/month for Salaried Individuals¹

Buy Online