An Easy-to-Understand Definition of
Beneficiary, Example Sentences
English Vocabulary Lesson
In this lesson, we will look at the definition of beneficiary,
as well as example sentences and easy dialogues that show how this
word is used in context.
Do you know what a beneficiary is? It is an
important concept that can help you in various parts of your life.
From finance to law, "beneficiary" can have different meanings and
we are here to explain it all!
A beneficiary in insurance is someone who will
receive money if something bad happens.
For example, if a person buys an insurance policy and they pass
away (die), then the beneficiary gets the money from the insurance
The amount of money they get depends on the agreement between the
person who paid for the insurance and the insurance company.
For example, Lucas has a life insurance policy (contract) and he
names his son, Marco, as the beneficiary. According to the policy,
if Lucas passes away, Marco will get $100,000 from the insurance
company. To keep the policy active, Lucas pays regular insurance
premiums of $50 per month.
Mia has a car insurance policy and if something were to happen to
her car, the beneficiary
(Mia in this case) will
get money from the insurance company.
Now let's say that Mia has unfortunately been in an accident, and
her car is damaged beyond repair. She will receive the value of the
car at the time of the accident, minus any deductible
she may have.
In this case, Mia's car was worth $15,000 and her deductible was
$500. Therefore, Mia will receive $14,500 from the insurance
company. She will receive this money because she is the beneficiary
of the car insurance policy.
in banking is someone who will
receive money that has been transferred from a bank account.
For example, if you have a bank account that contains money and you
want to send it to somebody else, then the person you are sending
money to is the beneficiary
Let's say that Mark has $20 in his bank account, and he wants to
send it to his brother, Tom. Mark would log into his bank's website
and enter Tom's name as the beneficiary
transaction. This means that when Mark sends the money, it will be
sent directly to Tom's bank account.
Another meaning of beneficiary
in banking is
someone who will receive money in case of death. For example, if
Mark had a bank account and he named Tom as the beneficiary
of his account, then when Mark passes away, Tom will receive the
money in Mark's account.
in a trust is someone who will
receive the money from a trust.
(also called a trust fund
is a legal agreement where one person (the grantor
transfers money or property to another person or organization
(called a trustee
), to manage the money or property for the
benefit of a third person (the beneficiary
The trustee is responsible for managing, investing, and distributing
the assets of the trust to the beneficiary
according to the terms of the trust.
For example, let's say that Gabriel sets up a trust and names his
5-year-old daughter, Sophia, as the beneficiary
In this case, Gabriel gives $100,000 and some real
estate to the trustee (which could be a lawyer or bank), and
instructs the trustee to manage the assets for Sophia until she
turns 21. At that point, the trustee will transfer the $100,000 and
real estate to Sophia (the trust beneficiary).
This ensures that Sophia will receive the money and property when
she is old enough to manage it.
in a will is someone who will
receive money or property according to the official instructions of
the person who wrote the will (the testator
is a document someone writes that states
who should receive money and property when he or she passes away.
For example, if Jenny writes a will and names her brother Noah as
of a certain amount of money, then
when she passes away, Noah will receive that amount of money
according to her wishes.
In this case, Noah is a beneficiary
of the will.
In law, a beneficiary
is someone who will receive
the benefits of an agreement, contract, or another legal document. (Benefits
are payments in the form of money, property, or other rights).
For example, if a contract states that Alex is to pay Amina $400,
then Amina is the beneficiary
of the contract.
Another example of a beneficiary
in law is when
there is a court order. For example, if the court orders company A
to pay company B $100,000, then company B is the beneficiary
of the court order.
So as you can see, a beneficiary
is someone who
will receive the benefits of a legal document. Benefits
are payments in the form of money, property, or other rights.
My dad set a trust fund for me, so I'm going
to be the beneficiary
when he passes
Really? Who is the trustee?
My uncle. He'll be in charge of managing the
money until I'm old enough to manage it myself.
When can you get the money?
When I turn 25. Or if I get married before
then, the trustee can decide to give me the money earlier.
I wonder why your dad chose 25 as the age.
I guess he wanted to make sure I would be
mature enough to handle a large sum of money responsibly.
That makes sense. So you're the beneficiary
of the trust fund, and your uncle is the trustee. Got it! But who is
My dad. He's the one who set up the trust
fund and provided all of the money.
I wonder if my dad has a trust fund set up
If he does, then you're the beneficiary
My aunt passed away.
I'm so sorry to hear that. My condolences.
Thank you. I actually did not know her that
well, but I'm the beneficiary
of her will.
Oh... What does that mean?
Her will states that I'm the beneficiary
of her house and all of her other assets. She also owned a company,
and I'm the beneficiary
of that as well.
Which company is it?
It is a tech company that develops apps for
Wow, your aunt must have been very
Yes, she was. I'm glad that I'm the beneficiary
of her legacy. I will make sure to take good care of her company.
I'm sure she would be proud.
Thank you for your kind words.
- The beneficiary of Tim's life insurance policy is his
- When you open a bank account, you can choose who will be the beneficiary.
- The trust document specified that the children are the
beneficiaries of the estate.
- I am the sole beneficiary of my grandmother's estate.
- The trust fund is set up so the beneficiary will
receive payments until they turn 18.
- His dad's life insurance policy names him as the beneficiary.
- The court ordered the company to pay beneficiaries
$500,000 in damages.
- My grandmother named me as the beneficiary of her
- Joe is the beneficiary of his uncle's will.
- Maria is the beneficiary of her father's bank account.
- Several beneficiaries were named in the will.
- The beneficiary of the fund will be announced at a
- The beneficiaries of the trust are the minors.
- Every beneficiary of the program will receive a $500
- Beneficiaries of the trust fund will receive their
- All beneficiaries are eligible for a tax deduction.
- The charity's main beneficiaries are children in need.
- The program's primary beneficiaries are low-income
- The company distributed its profits to its shareholders as
- He named his girlfriend as the sole beneficiary of his
life insurance policy.
- The grant will be provided to the beneficiary
organization within 30 days.
Disclaimer: This English vocabulary lesson is
for informational and educational purposes only. It is not
intended to be a substitute for professional advice.