Policyholder (Contract Holder)

Policyholder (Contract Holder) A policyholder is the person who purchases and owns an insurance policy. The policyholder is responsible for paying the premiums and is entitled to the benefits of the policy. The policyholder may also be the insured person, but this is not always the case. For example, a parent may purchase a life insurance policy for their child, or a business owner may purchase a health insurance policy for their employees. For life insurance it's a little bit different. You may be the policyholder, but someone else may be the insured party. In addition, you will need to name one or several beneficiaries of the policy. In life insurance, the policyholder owns and controls the policy but is not always the insured. A wife can purchase 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. The policyholder is the owner of the insurance policy. As the policyowner, you have control over the insurance and in all cases except life insurance. Policyholders play an important role in the insurance system. They are the source of the premiums that insurance companies use to pay claims. Policyholders also have the right to choose the insurance company that they want and to understand the terms and conditions of their policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful