Who receives the benefits upon the death of the insured?

The correct answer is the beneficiary. In a life insurance policy, the beneficiary is the person or entity designated by the policyowner to receive the death benefit upon the death of the insured. This designation is crucial because it determines who will financially benefit from the policy after the insured's passing.

The policyowner may have the flexibility to choose or change the beneficiary at any time, as long as the policy allows for such changes. The beneficiary can be a person, such as a spouse or child, or an institution, like a charity or trust. When the insured dies, the insurance company pays the benefit directly to the beneficiary, fulfilling its obligation under the terms of the contract.

This structure is essential because it provides financial support to those who may be dependent on the insured for income or support, ensuring their needs are met even after the loss.