A life insurance policy is a contract between a policyholder and an insurance company. It is a future plan that allows the insured to make an agreed premium payment with the understanding that, in return, the insurer will pay a death benefit to the contract’s beneficiaries when the insured passes.
A life insurance policy beneficiary could be a human or an entity like a business, charitable giving, or an estate. As an insured, you are at liberty to name any beneficiary of your choice, and can also choose from various life insurance policy types that suit your needs and goals.