Payee

What Does Payee Mean?

A payee is the party to whom money is paid. In the context of insurance, both insurance companies and policyholders can serve as payees, depending on the circumstances.

Insuranceopedia Explains Payee

Insurance companies act as payees to policyholders when they receive regular insurance premium payments. Conversely, policyholders become payees to insurers when they successfully file a claim and receive compensation for their losses. For example, when a named life insurance beneficiary collects a death benefit from the insurer, the beneficiary is the payee in that transaction.