Who is considered a beneficiary in a life insurance policy?

In a life insurance policy, a beneficiary is defined as the person or entity entitled to receive the death benefit upon the insured's passing. This designation is crucial because it specifies to whom the insurance company will pay the benefits when the policyholder dies. The beneficiary can be an individual, such as a family member or friend, or an organization, such as a charity or trust.

Selecting a beneficiary ensures that the policyholder's intentions for the use of the funds are honored, providing financial security for loved ones or fulfilling philanthropic goals. Other entities mentioned, such as the lawyer, insurance agent, or the insurance company itself, do not have a claim to the death benefit unless they are specifically named as beneficiaries by the policyholder, which is not the typical context in which these roles are involved in a life insurance policy.