A beneficiary is a person or entity that you legally designate to receive the benefits from your financial products. The term "beneficiary" can refer to different things depending on the context. Here are some examples:

• Life insurance beneficiary: This is the person or entity that will receive the death benefit from your life insurance policy if you die.

• Retirement or investment account beneficiary: This is the person or entity that will receive the balance of your assets in those accounts when you die.

• Bank account beneficiary: This is the person who will receive the funds in your bank account after you pass away.

It is important to name a beneficiary for your financial products because it ensures that the funds will go to the people or organizations you care about when you die. If you dont name a beneficiary, it may be unclear who is entitled to the funds, which can delay the benefit payment.

When you name your beneficiary, you need to be specific and provide their full legal name and their relationship to you (spouse, child, mother, etc.) . Your beneficiary can be a person, a charity, a trust, or your estate. Almost any person can be named as a beneficiary, although your state of residence or the provider of your benefits may restrict who you can name as a beneficiary.

If you have a named beneficiary, the funds in your account will be transferred to the beneficiary automatically after you pass away. This can help keep the funds out of litigation and avoid probate proceedings.