What is the term for a person, organization, or entity that benefits from a life insurance policy?

The term that refers to a person, organization, or entity that benefits from a life insurance policy is "beneficiary." The beneficiary is designated by the policyholder to receive the death benefit upon the death of the insured individual. This arrangement ensures that the financial support intended by the policyholder reaches the selected individual or entity, whether that be family members, friends, or charitable organizations.

In contrast, the premium payer is the individual or entity responsible for making payments on the life insurance policy. The insured is the person whose life is covered by the insurance policy, while the policy owner is the person who holds the policy, which may or may not be the same as the insured. Understanding these definitions is crucial for grasping the roles different parties play in a life insurance contract.