The beneficiary is the person, trust, or other entity named in the life insurance contract to receive all or a portion of the proceeds payable at maturity. The section of the contract dealing with the designation and rights of the beneficiary is in many respects the most significant one in the entire contract. It reflects the insured�s decisions concerning the disposition of his or her human life value. It is the means by which the insured provides family financial security after he or she dies. In a well-planned estate, the beneficiary designations will be integrated with the election of a settlement option in the most effective way to carry out the insured�s objectives.

There are many facets to a study of the beneficiary in life insurance, and the starting point is a description of the various categories of beneficiaries and beneficiary designations. Emphasis is placed on customary situations and policy provisions, and the student is cautioned that any particular case is decided on the basis of its own facts and the policy wording involved.