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In an insurance policy, the beneficiary is the person or entity entitled to receive the benefits or proceeds when a claim is made, such as upon the death of the insured or when a specific event occurs that the insurance covers. This designation ensures that the financial benefits of the policy are directed according to the wishes of the policyholder. Naming a beneficiary is a crucial aspect of insurance because it provides clarity and security regarding who will receive the funds, thus preventing potential disputes or confusion after the insured event.

Others may be involved in the insurance process, such as the insurance company which issues the policy and the individual responsible for paying premiums, but they do not receive the benefits directly. Similarly, while the individual who files a claim may be involved in the process of seeking benefits, that role does not define them as the beneficiary of the policy itself. Understanding the role of the beneficiary clarifies the purpose of insurance policies in ensuring financial support for chosen individuals or entities during critical times.