Thank you for your question. The applicant is typically the person or entity that will own the policy. In most life insurance transactions the applicant and the insured are the same person. The beneficiary is the person that will sustain an economic loss in the event of the death of the insured. In other words, you purchase the life insurance, because you know that your family will need money, (your income will stop), in the event of your death. The insurance company pays money to the beneficiary, your wife. Any time that someone or some thing will experience an economic loss or will need money in the event of someone's death, then there is a reason to purchase life insurance.