What is it called when a policyowner lists a group of people as beneficiaries?

When a policyowner lists a group of people as beneficiaries, this is referred to as a class designation. A class designation allows the policyowner to specify a category of individuals—for example, "my children" or "my nieces and nephews"—rather than naming each person individually. This approach can simplify the process of beneficiary designation and ensures that any future members of that class, such as additional children born after the policy was taken out, will automatically be included as beneficiaries.

Using a class designation provides flexibility in beneficiary arrangements, as it can adapt to changes in family composition without needing to revise the policy. This is particularly useful for individuals with evolving family situations, ensuring that the benefits of the policy are distributed according to the policyowner's intent without necessitating continual updates to the policy documentation.