Glossary
Beneficiary
A beneficiary is the person or entity named in a life insurance policy to receive the benefit when the insured event, usually death, occurs.
Beneficiary explained
When a policyholder takes out life cover, they name one or more beneficiaries. If the life assured dies while the policy is in force, the insurer pays the sum assured to those beneficiaries rather than to the estate, subject to the policy terms.
A policyholder can usually name several beneficiaries and give each a share, for example a spouse receiving 60 percent and two children receiving 20 percent each. Beneficiaries can normally be changed during the life of the policy by notifying the insurer.
Keeping beneficiary details up to date matters. Out-of-date or missing beneficiary information is a common reason death claims are delayed while the insurer establishes who should be paid.
Why it matters in life insurance
Funeral and death benefits in Zambia are often needed quickly, so insurers must be able to identify and verify beneficiaries without delay. Ontech LifeI ERP stores beneficiaries with their share and identification details against each policy, and prints them on the policyholder's digital life card.