policyholders

Policyholders are individuals or organizations that hold an insurance policy and are party to the contract with an insurer. They are typically responsible for paying premiums and for administering the policy, such as updating basic information and communicating changes or claims. The terms policyholder, insured, and beneficiary describe different roles within an insurance arrangement.

In life insurance, the policyholder and the insured can be distinct; the policyholder is the owner of the policy and controls the contract, while the insured is the person whose life is insured. Premiums are paid by the policyholder, and the policy may designate beneficiaries who receive the death benefit when the insured dies. In property and casualty or health policies, the policyholder is often the insured person, employer, or organization, but a separate owner or mortgage lender can exist in some cases.

Rights and duties: The policyholder generally has the right to designate or change beneficiaries (within policy terms), assign the policy, and cancel or lapse coverage if premiums are not paid. They must provide accurate information and notify the insurer of changes. Upon a claim, the beneficiary or claimant interacts with the insurer; the payout terms are defined in the policy.

Limitations and regulation: Policyholders are protected by consumer protection and insurance regulations that govern contract formation, disclosure, and claims handling. Policies may have surrender values, loan provisions, or other features that affect ownership and benefits.