4.5 Naming an Entity as Beneficiary
The beneficiary designation is not necessarily reserved for individuals. It is possible to designate others, such as a trust, a group of people (class), an estate, a charity organization, or other business entity - so let's take a look at those as well.
Usually when a business is named as beneficiary, the business is also the policyowner and the insurance is placed on the life of a key person to the business (insurable interest is established). This is the type of transaction that is referred to as a third-party policy.
