The person(s), estate, or financial instrument (for example, a trust fund), named in the policy as the recipient of the guaranteed payment in the event of the policyholder's death. Also known as beneficiary.
(1) For life insurance, the person or party who is to receive insurance policy proceeds in accordance with the terms of a settlement agreement following the payee's death. Also known as successor payee. (2) For annuity contracts, a person designated by the annuity contract owner to receive any remaining annuity payments upon the death of the payee.