Is the Beneficiary a Legal Party to a Life Insurance Contract?

Although technically, a beneficiary is not a party to the life insurance contract, if a contract is for the direct benefit of a third person who is not a party to the contract, that person can sue for damages incurred as the result of a breach of contract. For that reason, the authors have included the beneficiary among the parties to the life insurance contract.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM