beneficiary

ben-uh-FISH-ee-er-ee /ˌbɛnɪˈfɪʃəri/
nounB2TOEFLIELTS
legalfinancial

A person who derives advantage from something, especially a trust, will, or life insurance policy.

In retirement, this is the person who receives the funds if the account holder passes away.

The story behind the word. From the Latin 'beneficium', meaning a kindness or a favor. It literally means someone for whom something 'well' (bene) has been 'done' (facere).

Word relationships

  • heir: Specifically someone who inherits property by law or will.
  • recipient: A more neutral term for anyone who receives something.
  • benefactor: The person who gives the benefit or money.

Commonly confused with

  • donee: A donee receives a gift; a beneficiary receives a benefit from a legal structure like a trust.

Word family

  • benefit (noun/verb): An advantage or profit gained from something.

Collocations

  • primary beneficiary
  • contingent beneficiary
  • named beneficiary

Example sentences

  • "It is vital to keep your beneficiary designations up to date after major life events like marriage or divorce." Legal Advice
  • "The charity was named as the primary beneficiary of the billionaire's vast estate." News

Memory hook

A 'beneficiary' is someone who finds things 'beneficial'. The one who gains.

When not to use

Don't use this for the person paying into the fund; they are the 'contributor' or 'subscriber'.

Fun facts

  • In the Middle Ages, a 'benefice' was a permanent church appointment for which property and income were provided.

Related words

pension, entitlement

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