Jones has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Jones' mother is a(n):
A) incidental beneficiary.
B) donee beneficiary.
C) creditor beneficiary.
D) assignee.

Question

Quizplus · Accepted Answer

Jones' mother is a donee beneficiary because she is the designated recipient of a gift under the life insurance policy. She is not an incidental beneficiary because she is specifically named in the policy, not just a bystander who may benefit from its existence. She is also not a creditor beneficiary because she is not owed any debt or obligation by Jones. Finally, she is not an assignee because Jones has not transferred any ownership or rights to her, but rather designated her as the beneficiary of the policy.

Jones Has a Life Insurance Policy on His Own Life