Beneficiary
The person or entity you designate to receive the proceeds of an insurance policy or retirement account.
What does beneficiary mean?
Naming a beneficiary lets assets pass directly, bypassing probate. Keep designations up to date after major life events — they generally override what your will says for those accounts.
Put it to use
Related terms
Beneficiary — frequently asked
Why should I name a beneficiary?
A named beneficiary lets accounts like retirement plans and life insurance pass directly to the person you choose, skipping probate. Without one, the money can be delayed, taxed differently, or distributed against your wishes.
Does a beneficiary designation override my will?
Yes. For accounts with named beneficiaries — 401(k)s, IRAs, life insurance — the designation controls, even if your will says otherwise. Review beneficiaries after marriage, divorce or a death to keep them current.