What term is used for the person to whom the proceeds of a life or accident policy are payable when the insured dies?

The correct term used for the person to whom the proceeds of a life or accident policy are payable when the insured dies is "beneficiary." In the context of insurance policies, the beneficiary is specifically designated by the policyholder to receive the benefits after the insured person passes away. This designation is crucial, as it ensures that the funds from the policy are directed to the intended recipient, providing financial support during a difficult time.

In contrast to the beneficiary, terms like recipient, heir, and claimant have different meanings in the context of insurance. A recipient could refer to anyone receiving something, not specifically related to life or accident policies. An heir is someone who inherits assets when a person dies, typically according to the laws of inheritance, rather than through a specific designation in an insurance policy. A claimant is a person who makes a claim for benefits but does not necessarily indicate a direct entitlement to the proceeds like a beneficiary does. Thus, the term "beneficiary" is the most appropriate and accurate choice in this scenario.