Life Insurance Beneficiaries

These flashcards cover key terms and definitions related to beneficiaries in life insurance policies, including types of designations, roles, and considerations.

Beneficiary

A person or entity that receives the death benefit from a life insurance policy in the event of the insured's death.

Individual Designation

Naming specific individuals as beneficiaries of a life insurance policy.

Minor Beneficiary

A child designated as a beneficiary who cannot receive benefits until reaching maturity.

Trustee

A person or entity appointed to manage assets on behalf of a minor child until they are eligible to receive benefits.

Class Beneficiary

Grouping beneficiaries, such as stating 'all my children equally' to divide benefits among them.

Estate as Beneficiary

Designating the insured's estate to receive proceeds from a life insurance policy if no other beneficiaries are named.

Primary Beneficiary

The first person or entity to receive death benefits, assuming they are still alive.

Contingent Beneficiary

A secondary beneficiary who receives benefits if the primary beneficiary is deceased or cannot be located.

Revocable Beneficiary

A beneficiary designation that can be changed by the policy owner at any time.

Irrevocable Beneficiary

A permanent beneficiary designation that cannot be altered without the beneficiary's written consent.

Vested Interest

Legal entitlement held by irrevocable beneficiaries that requires their consent for certain changes to the policy.

Insurance Producer

A professional who ensures that the insured's and their beneficiaries' information in the policy is accurate and up to date.