In terms of beneficiary designation in life insurance, which of the following is true?

Multiple beneficiaries can be named on a life insurance policy, which allows the policyholder flexibility in determining how benefits are distributed upon their death. This means that an individual does not have to choose just one beneficiary; instead, they can specify several people or entities to receive a portion of the death benefit. This can be particularly useful in scenarios where the policyholder wants to provide for various family members, charities, or other organizations, thus ensuring that their wishes regarding benefit distribution are honored.

Having multiple beneficiaries can also help avoid complications and disputes among heirs after the policyholder's death, as the specifics of distribution can be clearly defined. Additionally, the policyholder can specify what percentage of the benefit each beneficiary receives, further tailoring the distribution to their preferences. This aspect of beneficiary designation underscores the importance of planning and communication in life insurance coverage.