The term beneficiary is a key word in life insurance, as well as in a number of other financial arrangements.
If a hazard covered by an insurance policy occurs, the policy’s beneficiaries have the right to claim a benefit in keeping with the terms of the policy.
In the case of life insurance, the beneficiary can claim a sum of money (the “benefit”) if the death of the insured person occurred under circumstances covered by their life insurance policy.
Those covered by a pillar 3b insurance policy are free to name any entity as the beneficiary of their plan. In the case of a pillar 3a policy, beneficiaries must belong to the policyholder’s family.