Definition of Beneficiary clause:
A beneficiary clause defines the individuals who will benefit from the funds or other benefits from the policyholder or benefactor. The policy owner may change the named beneficiaries at any time by following the specifications defined in the policy. The term beneficiary refers to the specification of the recipient of funds or other benefits as specified in a policy or trust.
A beneficiary clause is a provision in a life insurance policy or other investment vehicle such as an annuity or individual retirement account (e.g., an IRA), that permits the policy owner to name individuals as primary and secondary beneficiaries.
Clause that allows the insured to designate anyone as a beneficiary, and to change this designation at any time.
How to use Beneficiary clause in a sentence?
- Named beneficiaries are those individuals or entities that a benefactor names in a trust, life insurance policy, or retirement plan.
- Many of these clauses allow for a secondary or tertiary beneficiary to be designated in case the owner survives those named first.
- The beneficiary clause in a financial product or contract designates who will receive the associated assets attached to that product or vehicle upon their death.
Meaning of Beneficiary clause & Beneficiary clause Definition