What are "beneficiaries" in a life insurance policy?

In a life insurance policy, beneficiaries are the entities or individuals designated to receive the death benefit upon the insured's passing. This ensures that the financial support intended by the policyholder is directed to the appropriate recipients, which could include family members, friends, or even charitable organizations. The designation of beneficiaries is a critical part of the life insurance contract, as it determines who will receive the financial payout that helps cover funeral costs, debts, or provides ongoing financial support for loved ones left behind.

Understanding the role of beneficiaries is essential for ensuring that the policyholder’s wishes are fulfilled after their death. This can help prevent disputes among family members and ensure that the funds are distributed according to the policyholder's intentions. In contrast, other roles mentioned in the options, such as policy managers, premium payers, and claims evaluators, do not directly relate to the distribution of the death benefit, thereby highlighting the specific importance of beneficiaries in the context of life insurance policies.