What term describes the individual who is designated to receive benefits under an insurance policy?

The term that describes the individual designated to receive benefits under an insurance policy is “beneficiary.” This designation is crucial in insurance policies, as it ensures that the specified person or entity will receive the policy's benefits, such as a death benefit in the case of a life insurance policy, upon the occurrence of a specified event.

The beneficiary can be a variety of individuals or entities, such as a family member, friend, or charity, and can even be one or multiple roles. This designation allows the policyholder to determine who will benefit from the policy and provides a clear direction for the distribution of benefits upon the policyholder's death or other triggering events.

Understanding the role of a beneficiary is vital for policyholders as it directly impacts financial planning and security for their loved ones or chosen organizations.