Another of the basic concepts that we find in an insurance policy is that of the beneficiary. To speak of a beneficiary in an insurance contract is to speak of the person who will receive compensation from the insurance company in the event of an accident, provided that the conditions that were agreed upon when contracting the policy are fulfilled.
In personal risk insurance is where we can most clearly distinguish the figure of the beneficiary of the policy. In this type of insurance we find that the policyholder can insure his life so that when a third party reaches a certain age he receives an economic benefit. That third party is the beneficiary of the policy. It is usual in this insurance that the policyholder, insured and beneficiary is the same person, but it can also fall on different people.
In the event that the insured risk is death, obviously the beneficiary must be a different person from the insured. Thus, it is usual for a father to insure the risk of his death, so that when this happens, his son is the beneficiary of the compensation agreed in the policy.