Who is referred to as a "beneficiary" in an insurance policy?

In an insurance policy, the term "beneficiary" refers specifically to the individual or entity designated to receive the proceeds from the policy in the event of a claim or the occurrence of a covered loss. This designation is a crucial aspect of the policy because it identifies who will benefit from the insurance coverage.

For instance, in a life insurance policy, the policyholder may name a spouse or a child as the beneficiary, ensuring that upon the insured's death, the specified amount of money is paid directly to that person. This arrangement highlights the purpose of insurance as a means of providing financial protection and support to loved ones or intended recipients.

The other roles mentioned, such as the insurer who provides the coverage, the organization that manages the policy fund, and the agent handling the policy application, serve different functions within the insurance process. The insurer takes on the obligation to pay claims, the managing organization administers the policies and investments, and the agent assists with writing the policy and managing the relationship between the insurer and the insured. Each of these roles is important to the functioning of an insurance policy, but they do not define the beneficiary’s purpose, which is solely related to receiving benefits under the policy.