Who is considered the policyholder in life insurance?

The policyholder in life insurance is the individual or entity that owns the insurance policy. This person or organization has the rights to the policy, including the ability to change beneficiaries, make premium payments, and potentially take out loans against the cash value if it is a permanent policy. The policyholder is responsible for maintaining the insurance coverage and meeting its terms.

In contrast, the insurance company provides the policy, but it does not own the policy itself. The beneficiary is the individual designated to receive the benefits upon the death of the insured, but they do not own the policy and do not have the rights associated with it. The underwriter is involved in evaluating the risk and setting premiums but does not have any ownership of the policy. Understanding the role of the policyholder is essential as it establishes who ultimately governs the policy and is responsible for its management.