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The term "beneficiary" specifically relates to the individual designated in a life insurance policy to receive the benefits upon the death of the insured person. This designation is a crucial part of a life insurance contract, as it ensures that the financial payout goes to a person (or entity) chosen by the policyholder, which can help to provide financial support to loved ones or fulfill other intentions for the policy's proceeds.

In life insurance, the beneficiary can be a family member, friend, trust, or even a charitable organization, and the selection of a beneficiary is an important decision that policyholders make. This role is distinct from others involved in the insurance process, such as the insured, who is the person whose life is covered by the policy, or the party who pays the premiums, which may or may not be the same as the insured or the beneficiary. Hence, understanding the definition and function of a beneficiary is essential for grasping how life insurance operates and protects those left behind after the death of the insured.