A beneficiary is a person or entity designated to receive benefits, assets, or funds from a legal arrangement, such as a will, trust, or insurance policy. When someone passes away or a specific event occurs, the beneficiary is entitled to inherit or receive the specified benefits. This designation ensures that the assets are distributed according to the wishes of the person who created the arrangement. In the context of life insurance, for example, the policyholder names a beneficiary who will receive the payout upon their death. This can provide financial support to loved ones, helping them cover expenses or maintain their standard of living. Beneficiaries can be individuals, such as family members, or organizations, like charities.