In accident and health insurance, who is referred to as the "beneficiary"?

In accident and health insurance, the term "beneficiary" specifically refers to the individual or entity designated to receive benefits under the policy. This designation is crucial as it determines who will benefit financially from the insurance policy in the event of a claim. The beneficiary is typically named by the policyholder at the time of purchasing the insurance and can be a family member, friend, trust, or organization.

Understanding this role is essential for policyholders, as it directly impacts how benefits are distributed upon the occurrence of an illness or accident. The clarity of this designation helps prevent potential disputes or delays when benefits are needed the most. Other roles involved in the insurance process, such as the premium payer, insurance agent, or the insurance company itself, do not serve the function of a beneficiary in this context. These roles or parties have different responsibilities that do not include receiving the benefits defined in the accident and health insurance policy.