A beneficiary is the person or entity designated to receive the proceeds of an insurance policy in the event of the policyholder's death. In the context of health insurance, the term beneficiary is more commonly used in life insurance and accidental death and dismemberment (AD&D) policies. The policyholder names one or more beneficiaries on their application, and these designations can typically be changed at any time while the policy is active. Beneficiaries can be individuals (a spouse, child, or other person), estates, trusts, or charitable organizations. It is important to keep beneficiary designations up to date, especially after life events like marriage, divorce, or the birth of a child, as outdated designations can cause complications during claims.