Beneficiary

The applicant applies for the policy, the insured is the person whose life is covered, and the beneficiary receives the death benefit — The applicant is the person who applies for the policy and pays (or is responsible for) the premium. The insured is the person whose life is insured and whose death triggers the death benefit. The beneficiary is the person designated to receive the death benefit. The policyowner is the person who holds the contractual rights, and while these roles often coincide in one person, they are distinct concepts that the exam frequently asks candidates to separate.

National insurance concept

The full face amount of the base policy, payable when the income period ends — A family income policy combines a base permanent or term life policy with a family income rider. If the insured dies during the income period, the beneficiary receives monthly income until the period ends, and the base policy's face amount is also payable (often as a lump sum when the income payments cease). This arrangement replaces the insured's earning power during the years when the family needs it most.

National insurance concept