Insurance term
Beneficiary
Who receives the payout
Definition
The person or entity nominated to receive proceeds from a policy, most commonly under life cover.
In more detail
Nominations are recorded with the insurer and can usually be updated by the policyholder. An out-of-date nomination is a common cause of proceeds going somewhere the policyholder no longer intended.
How a nomination interacts with a will and with estate rules depends on jurisdiction and on whether the policy is written in trust.
Glossary entries are general explanations, not advice. Where a term appears in a contract or policy, the definition in that document governs.