Who is defined as a policyholder in life insurance?

In the context of life insurance, the policyholder is the individual or entity that owns the life insurance policy. This means the policyholder is the one who has entered into a contract with the insurance company, has the legal rights to make changes to the policy, and is responsible for paying the premiums.

The significance of this definition lies in the fact that the policyholder can determine beneficiaries, make adjustments to coverage, and potentially surrender the policy if needed. While the person who receives the death benefit (the beneficiary) may be different from the policyholder, it is the policyholder who possesses the policy rights and responsibilities. This distinction is essential for understanding the roles individuals play in life insurance agreements.

In contrast, the insurance agent is not the owner of the policy but may facilitate the purchase, and the insurance company itself is the entity that provides the policy but is not the owner. Understanding these roles clarifies the unique position of the policyholder in the life insurance framework.