The person who receives the proceeds from an insurance policy is known as what?

The individual who receives the proceeds from an insurance policy is referred to as the beneficiary. This term specifically designates the person or entity named by the policyholder to receive the benefits upon the occurrence of the event that the policy covers, typically the death of the insured. Understanding this role is crucial, as it clarifies the distribution of funds and ensures that the policyholder's intended recipients gain access to the insurance money.

While the policyholder is the individual who owns the policy, the insurer is the company that provides the insurance coverage, and the claimant is typically the person who files a claim for benefits. Thus, the term beneficiary is precisely what delineates the recipient of the insurance proceeds, highlighting the importance of designating an appropriate beneficiary during the policy establishment.