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Insurance who is the beneficiary?
In life insurance the person who is being insured is not normally the recipient of any claim settlements provided by the policy. This is simply due to the fact that Life Insurance, by its very definition, is designed to provide a financial settlement in the event that an individual should die.
As such, when setting up a policy you will need to specify an individual or entity or group to receive the financial settlement provided by the plan. This recipient of the life insurance settlement is called the Beneficiary.
Under a life insurance you can take out a policy on any person to whom you have an insurable interest. This could be your spouse, it could be an employee, a business partner, or it could be yourself. A bank may request a life insurance policy is taken out for an individual holding a significant loan.
The “insured” is the person whose life is being covered by the policy. Should they die, or (in some cases) suffer a total or partial dismemberment or disability, then the policy will provide financial compensation to the beneficiary named on the plan.
This could be the insured’s wife, or children. It could also be their employer or bank. Life insurance beneficiaries can be named as wanted by the policyholder, and changed over the lifetime of the policy. However, it is important to note that there is normally a cooling off period between beneficiary nominations, and that substituting or removing a beneficiary from the plan will usually require follow up from the insurance company.
So, who is the beneficiary of life insurance? Anyone can be the beneficiary.
If you have any more questions about life insurance or any type of other Hong Kong insurance policy just ASK CCW! Remember, we’re simplifying your insurance.
Answered on: 2 May, 2019 01:32
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