Key Takeaways
- A beneficiary receives the payout from a life insurance policy or annuity.
- You can name primary and contingent beneficiaries.
- Keeping beneficiaries up to date avoids costly delays.
A beneficiary is the individual, trust or organization you designate to receive the proceeds of a life insurance policy or annuity when you pass away. You can name more than one, and you can specify what share each receives.
Reviewing your beneficiaries after major life events — marriage, divorce, a new child — ensures the right people are protected.