In life insurance, what is a key feature of a 'beneficiary'?

A beneficiary in a life insurance policy is defined as the person or entity designated to receive the death benefit when the insured passes away. This is a fundamental aspect of life insurance, as the primary purpose of the policy is to provide financial support to the beneficiaries upon the insured's death.

The role of a beneficiary is crucial because it ensures that the financial protection that the policyholder paid for is allocated to a chosen party, which can be a relative, friend, or organization. The selection of a beneficiary can also influence aspects such as inheritance planning and financial security for dependents.

In contrast to the other options, the responsibilities and privileges of beneficiaries do not include paying premiums, assisting with policy changes, or having control over the terms of the policy itself. The beneficiary's primary function is straightforward: to receive the designated benefits as specified in the policy upon the insured's death.