If a beneficiary is designated in a life insurance policy, who receives the death benefit?

When a beneficiary is designated in a life insurance policy, the death benefit is paid directly to that designated beneficiary upon the death of the insured. This arrangement ensures that the funds go to the intended recipient as specified in the policy, bypassing the probate process and the insured's estate.

Choosing a specific beneficiary provides clarity and legal assurance regarding who will receive the benefits, which can be crucial for financial planning and fulfilling the wishes of the insured. In contrast, if no beneficiary is designated, the death benefit would go to the insured's estate, which can complicate the distribution and may result in delays. This highlights the importance of keeping beneficiary designations up to date, as they play a significant role in how benefits are allocated after someone's passing.