LIFE BENEFICIARY Meaning and
Definition
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A life beneficiary refers to an individual who has been designated as the recipient of certain benefits for the duration of their lifetime. This term is commonly used in the context of life insurance policies, retirement plans, and trusts. When an individual names a life beneficiary, they are stipulating who will receive the benefits from their policy, plan, or trust while the life beneficiary is alive.
In the realm of life insurance, the life beneficiary is the person who will receive the death benefit upon the insured person's death. The policyholder designates this individual by clearly specifying their name in the insurance contract. The life beneficiary is entitled to receive the payout regardless of whether they are related to the insured person or not.
Similarly, in retirement plans such as pensions or annuities, a life beneficiary is designated by the plan participant or annuitant to receive retirement income or benefits for the duration of their lifetime. This ensures that the life beneficiary is financially supported after the participant's or annuitant's death.
Moreover, trusts may also have life beneficiaries. A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries. In this case, a life beneficiary is someone who receives income or benefits from the trust during their lifetime. Once the life beneficiary passes away, the assets of the trust are distributed to the remainder beneficiaries as specified in the trust document.
Overall, a life beneficiary is an individual who receives benefits or income for their lifetime from a life insurance policy, retirement plan, or trust.
Common Misspellings for LIFE BENEFICIARY
- kife beneficiary
- pife beneficiary
- oife beneficiary
- lufe beneficiary
- ljfe beneficiary
- lkfe beneficiary
- lofe beneficiary
- l9fe beneficiary
- l8fe beneficiary
- lide beneficiary
- lice beneficiary
- live beneficiary
- lige beneficiary
- lite beneficiary
- lire beneficiary
- lifw beneficiary
- lifs beneficiary
- lifd beneficiary
- lifr beneficiary
- lif4 beneficiary
Etymology of LIFE BENEFICIARY
The word "life beneficiary" is a term used in the context of insurance or estate planning to refer to someone who receives the benefits or proceeds of a policy or trust during their lifetime.
The term "life" in this context refers to the duration of the beneficiary's life. The word "beneficiary" comes from the Latin word "beneficiarius", which means "appointed for good deeds" or "one who receives benefits". It is derived from "beneficium", meaning "benefit" or "favor".
Overall, the etymology of "life beneficiary" highlights the notion of receiving benefits or favors for the duration of an individual's life.
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