Beneficiary Clause


DEFINITION of 'Beneficiary Clause'

A beneficiary clause is a provision in a life insurance policy or other investment vehicle such as an annuity or IRA that permits the policy owner to name individuals as primary and secondary beneficiaries. The policy owner typically may change the named beneficiaries at any time by following the specifications defined in the policy.

BREAKING DOWN 'Beneficiary Clause'

The term beneficiary refers to the specification of the recipient of funds or other benefits as specified in a policy or trust. The beneficiary clause defines who this is; in other words, what individual(s) will benefit from the funds or other benefits from the policy holder or benefactor.

  1. Primary Beneficiary

    A beneficiary in a will, trust or insurance policy that is first ...
  2. Secondary Beneficiary

    A person or entity that inherits assets under a will, trust or ...
  3. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Estate

    All of the valuable things an individual owns, such as real estate, ...
  6. Taxes

    An involuntary fee levied on corporations or individuals that ...
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