Beneficiary Insurance Option. A rider attached to a single life policy that allows a beneficiary to purchase a life insurance policy upon the insured's death. The new policy may be issued based on the beneficiary's age at the time the original policy was issued. Policy size is generally a multiple of the original face amount, up to a specified maximum. Upon the death of the original insured, the policy's proceeds are used to offset the reserves necessary to establish those required on the new policy. For instance, if the original insured's death occurs in the 20th year, the beneficiary's new policy requires reserves equal to those of a 20 year-old policy.