What Does It Mean To Be The Beneficiary Of A Life Insurance Policy? 
The beneficiary of a life insurance policy is the person who receives the money in the event of the insureds death . Technically the beneficiary can do anything they want with the money . Life insurance proceeds are generally not taxable , -LRB- some exceptions may apply depending on the size of the estate -RRB- and avoid probate as long as the Estate is not the named beneficiary . 