Definition of Beneficiary
The beneficiary is the person who will receive the benefits and/or property in the event of the insured?s death as outlined in the will of the deceased.
Life insurance beneficiaries can generally be paid ten to twenty-one days after the insurance company has reviewed the claim and agrees no fraud has been committed. The life insurance company usually requires the death certificate when making an insurance claim, and the claimants must complete the proper forms and send them to the insurance company.
Other benefits also have beneficiaries who may be entitled to compensation in the event of death or disability. For instance, workers? compensation pays benefits to surviving beneficiaries if a claimant is injured or killed performing their work functions. Social Security Disability Insurance (SSDI) also allows surviving disability benefits to be paid to the surviving spouse and minor children of a disabled or diseased worker. More information about SSDI surviving disability benefits can be found on the SSA website www.ssa.gov.