Policyholder (Policy Holder)

Policy Holder In the insurance world, a policyholder which you may also see written as “policy holder” (with a space) is the person who owns the insurance policy. As a policyholder, you are the one who purchased the policy, can make adjustments to it and you are protected by all of the details inside. Policyholders are also responsible for making sure their premiums get paid. For a life insurance policy to remain in force, the policyholder must pay a single premium up front or pay regular premiums over time. The policyholder is the only one who can request changes or cancel an insurance policy, but others may receive coverage under the policy. The difference between policyholder and insured is that the policyholder is the owner of the policy, also called the named insured. They get all the benefits the policy offers. In the case of home insurance, it means they own the home that’s being insured (or their name is on the rental agreement, in the case of tenant insurance) an insured, on the other hand, is anyone who has coverage under the policy: Example Smith buys a home insurance policy for her new house. She owns the house and bought the insurance policy, making her the policyholder, as well as an insured. The language of her insurance contract also extends coverage to her spouse and dependents, so her partner and her daughter are both insureds as well. They are not, however, policyholders; their names don’t appear on the insurance contract. Difference between a Policyholder and a beneficiary; A beneficiary is an individual who receives the death benefit of a life insurance policy. They may or may not also be the policyholder. A single life insurance policy can have multiple beneficiaries but only one policyholder. Technically, you cannot change who the policyholder is after you purchase a policy. There are times, however, when you may need your policy to reflect a different person as the policyholder. In this case, your insurance company will cancel your current policy and rewrite it in the new policyholder’s name. Some examples of when this could happen include: selling your vehicle, death of a policyholder. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful