What is a life insurance beneficiary?

A beneficiary is the person or entity you designate to receive the death benefit when you die. You can name one or multiple beneficiaries, and you can specify what percentage of the payout each receives. Beneficiaries can be individuals (spouse, children, parents), trusts, charities, or businesses. You should review and update your beneficiary designations after major life events like marriage, divorce, or the birth of a child.