In short
A beneficiary is the person or people you want to receive the money from your policy when a valid claim is paid.
The beneficiary is whoever benefits from the policy payout, for example a partner, children, or other dependants. Making clear who you want to benefit, and ensuring the money can reach them quickly, is an important part of setting up cover.
By default, a life insurance payout forms part of your estate, which can mean delays while probate is granted and, in some cases, an inheritance tax charge. Writing the policy in trust is a common way to name beneficiaries directly and help the money reach them faster.
It is worth keeping your intended beneficiaries up to date as your circumstances change, such as after a marriage, divorce, or the birth of a child, so the right people benefit when the time comes.
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