What term describes the various types of beneficiaries in a life or accident policy?

The term "beneficiary types" aptly describes the various classifications of beneficiaries named in a life or accident policy. This terminology effectively encompasses the different roles that beneficiaries can hold, such as primary beneficiaries, contingent beneficiaries, and irrevocable beneficiaries. Each of these types has distinct rights and claims to the policy proceeds, which is essential for ensuring that the policyholder's intentions regarding the distribution of benefits are clearly understood.

Understanding the different beneficiary types is crucial for policyholders because it impacts how the benefits are managed upon the insured’s death or certain other events. For instance, a primary beneficiary is the first in line to receive benefits, while a contingent beneficiary may only receive payment in the absence of the primary beneficiary.

Other options such as beneficiary hierarchy, beneficiary classes, and beneficiary structure could be misleading or less commonly used terms within the context of insurance terminology, leading to potential confusion about their specific meanings compared to the straightforward definition offered by "beneficiary types."