Define "beneficiary" in the context of life insurance.

In the context of life insurance, a beneficiary is defined as the person or entity that is entitled to receive the death benefit upon the passing of the insured individual. This designation can apply to a wide range of individuals or organizations, including family members, friends, trusts, or charities. The primary purpose of naming a beneficiary is to ensure that the proceeds of the insurance policy are disbursed according to the wishes of the policyholder, providing financial support to those they designated after their death. This aspect of life insurance underscores its role as a financial tool that can provide security and aid for loved ones in the event of an untimely loss.

Other roles, such as the insurance agent, the policyholder, or the insurance company, do not hold the same function as the beneficiary since they do not directly receive the death benefit payment from the life insurance policy.