The beneficiary refers to the person designated by the insured or the policy holder in the life insurance contract who has the right to claim insurance benefits. Spouses can mutually designate each other as beneficiaries of a policy covering the life of the other, which can prevent the insurance proceeds from becoming the insured's estate. However, if the amount of inheritance and insurance amount are both large in the future, when the second spouse dies, the heirs may pay more inheritance tax due to the progressive tax rate, so a third party other than the insured or his spouse will be the beneficiary of the policy. More appropriately, trust funds are one option and children are another. When the policy has no beneficiaries, the insurance proceeds become part of the deceased's estate. Article 63 of my country's "Insurance Law" stipulates: After the death of the insured, one of the following situations occurs: there is no designated beneficiary; the beneficiary dies before the insured and there is no other beneficiary; the beneficiary loses the beneficial rights in accordance with the law or Give up the beneficiary rights and there are no other beneficiaries. The insurance money is the inheritance of the insured, and the insurer shall fulfill its obligation to pay the insurance money to the heirs of the insured. When the insurance proceeds are paid as an inheritance, the exemption from inheritance tax on the insurance proceeds will be lost, and the administrative costs of disposing of the estate will increase because the costs are calculated in proportion to the notarized assets of the estate. Generally speaking, the insurance money paid to the beneficiary after the death of the insured is not subject to personal income tax and inheritance tax, and life insurance premiums are also tax-free in most countries. In the United States, personal life insurance premiums are considered personal expenses and are not tax-free. However, the general inheritance tax law stipulates that the support, education and medical expenses paid by parents for their children are not included in the taxable inheritance. The insurance premiums purchased by parents for their children are not included in the taxable estate. The calculation of "support" depends on the specific explanation of the tax department. At the same time, inheritance tax laws stipulate that taxpayers enjoy certain tax exemptions and should make full use of the tax exemptions when paying premiums to achieve the effect of tax avoidance and tax saving. According to various national regulations, if a citizen dies, his or her property during his or her lifetime can also be inherited by the legal heir. Then a certain amount of inheritance tax will be paid when inheriting the inheritance. Citizens will also buy insurance to avoid inheritance tax. If any illegal behavior occurs after purchasing insurance, the party concerned will also be punished accordingly.