Washington Life Producer Practice Exam

What is the function of a beneficiary in a life insurance policy?

1. To pay the premiums

2. To receive the death benefit

3. To manage the policy

4. To underwrite the policy

The correct answer is: To receive the death benefit

The function of a beneficiary in a life insurance policy is to receive the death benefit upon the insured person's passing. This role is crucial as it ensures that the financial support intended for the beneficiaries, typically family members or dependents, is provided after the insured's death. The life insurance company will disburse the agreed-upon sum (the death benefit) to the designated beneficiaries, which can help cover expenses, provide income, or fulfill other financial needs in the absence of the insured. The other options do not accurately describe the role of a beneficiary. Premium payments are generally the responsibility of the policy owner, while the management of the policy falls on the policyholder or their appointed representative. Underwriting is a process performed by the insurance company to assess risk and determine policy terms and pricing, rather than a function associated with beneficiaries.