Definition

A beneficiary is who receives the proceeds of a life insurance policy or retirement account after your death. Beneficiary designations pass outside of a will and generally override it, so keeping them current — after a marriage, divorce, or birth — is essential. Naming a beneficiary also avoids probate for that asset.

1. Beneficiary Designation

   The named recipient on an account or policy, which passes the asset directly and overrides a will.
2. Will

   A legal document directing how your assets are distributed after death.
3. Term Life Insurance

   Life insurance that covers a set period and pays out only if you die during it.