Who is a beneficiary in the context of life insurance?

A beneficiary in the context of life insurance is defined as the individual or entity designated to receive the proceeds of the life insurance policy upon the death of the insured person. This means that when the policyholder passes away, the insurer pays out a specified amount of money, known as the death benefit, directly to the beneficiary. This role is crucial as it determines who will benefit financially from the policy after the insured individual has died.

Understanding the other roles can provide clarity: the person responsible for paying premiums, while essential for keeping the policy active, does not directly receive the benefits. The individual who sells the insurance policy is typically an agent or broker, and they do not have a stake in receiving any funds from the policy unless they have their own policy. A financial advisor associated with the policy may provide guidance and advice but does not automatically receive the insurance proceeds unless named as a beneficiary. Thus, the correct identification of a beneficiary is that they are the one designated to receive the benefits, making option B the right choice.