Policyholder

Policyholder The person(s) or an organization in whose name an insurance policy is held. They are the one who pays the premiums and is entitled to the benefits of the policy. The policyholder is also the only person who can make changes to the policy, such as adding or removing coverage or changing the beneficiaries. In some cases, there may be multiple policyholders on a single policy. For example, a married couple may be co-policyholders on their home insurance policy. In these cases, both policyholders have equal rights and responsibilities under the policy. Note that a beneficiary is not a policyholder. 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 Policyholders are also responsible for making sure their premiums get paid. Examples to illustrate policyholder: A wife that purchases a term life insurance policy with her husband as the insured and name her adult son and herself as the beneficiaries. As policyholder, she controls the life insurance policy. If her husband dies during the coverage period, the wife and her son will receive the death benefit payout. A wife 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 do not appear on the insurance contract. The policyholder’s main responsibility is to pay the insurance premiums and comply with the terms and conditions of the policy. In the event of an insurance claim, policyholders have the right to expect fair and timely claims processing and resolution from their insurance company It is important to note that a policyholder is the person who takes out an insurance policy, known alternatively as the named insured. The policyholder is the only one who can request changes or cancel an insurance policy, but others may receive coverage under the policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful