What context can I use each word in?
Learn when and how to use these words with these examples!
payee
Example
Please make the check payable to the payee listed on the invoice. [payee: noun]
Example
The payee received the funds via direct deposit. [payee: noun]
Example
The bank will notify the payee when the payment has been processed. [payee: noun]
beneficiary
Example
The charity was the beneficiary of the generous donation. [beneficiary: noun]
Example
The beneficiary of the life insurance policy was the deceased's spouse. [beneficiary: noun]
Example
The trust named the children as beneficiaries of the estate. [beneficiaries: plural noun]
Good things to know
Which word is more common?
Payee is more common in everyday language than beneficiary, as it is used frequently in financial transactions. Beneficiary is more commonly used in legal and insurance contexts.
Whatโs the difference in the tone of formality between payee and beneficiary?
Both payee and beneficiary are formal terms used in legal and financial contexts. However, beneficiary is generally considered more formal due to its association with legal documents and contracts.
