Who is considered a Policyholder?

A policyholder is defined as the individual or entity that owns an insurance policy. This person or organization is responsible for paying the premiums and has the legal rights to the benefits and coverage provided by the insurance policy. The policyholder is the primary party involved in the insurance contract, and as such, they hold the authority to make decisions regarding the policy, such as making changes or filing claims.

Understanding who the policyholder is essential in the context of insurance, as it determines responsibilities and rights within the agreement. For instance, only the policyholder can initiate changes to the policy or transfer ownership. This distinction is crucial because it lays the foundation for all other relationships in an insurance framework, including those with agents, beneficiaries, and the insurance company itself.