What is a common term used to describe the person who receives benefits from an insurance policy?

The correct term to describe the person who receives benefits from an insurance policy is "Beneficiary." In the context of insurance, a beneficiary is typically designated by the policyholder to receive the proceeds or benefits upon a certain event, such as death in life insurance policies or at the time of a claim in health or accident insurance. This term is crucial because it clearly delineates who will benefit from the policy, independent of the policyholder or the insured individual.

Understanding this role is essential in insurance practices, as the beneficiary has specific rights and may need to provide documentation to receive benefits. The distinction between the policyholder, who owns the insurance policy, and the beneficiary, who receives the payouts, is also critical in navigating insurance claims and ensuring that benefits are disbursed correctly according to the intentions of the policyholder. Other terms listed, while related to insurance, do not accurately reflect the individual designated to benefit from the policy.