Who are the individuals or entities designated to receive insurance policy proceeds called?

The individuals or entities designated to receive insurance policy proceeds are called beneficiaries. In an insurance context, beneficiaries are specifically named individuals or groups selected by the policyholder to receive the benefits from the policy upon certain events, such as the death of the insured or the occurrence of a defined event covered by the policy. This designation is crucial as it determines who will benefit from the coverage provided by the insurance policy.

Trustees manage assets and could potentially handle the distribution of policy proceeds but are not specifically the recipients themselves. Claimants refer to those who make a claim against an insurance policy but may or may not be the same as the beneficiaries. Insured parties are those who are covered by the insurance itself, which again does not capture the essence of who is entitled to receive the benefits. Therefore, beneficiaries serve a clear and specific role in the insurance process as correct recipients of the policy proceeds.