What does "beneficiaries by class" refer to in a policy?

"Beneficiaries by class" refers to designating a group of individuals as beneficiaries rather than specifying individual names. This approach allows a policyholder to name a category or classification of people—for example, "my children," "my grandchildren," or "my siblings." This can simplify the process in situations where the policyholder wants to ensure that all members of a certain group are included, such as children who may change over time.

Using class designations can help in situations like divorce, birth of new children, or other family changes without requiring the policyholder to continually update the policy with individual names. It provides flexibility and ensures that the intent of providing benefits to a specific group is honored, regardless of changes in the family dynamics.

The other options do not reflect the concept of beneficiaries by class. Assigning specific individuals would be a different approach altogether, and assigning beneficiaries to different insurance products or excluding individuals from beneficiary status also does not align with the broad categorization implied by "by class."