What is a policyholder?

A policyholder is defined as the individual or entity that owns an insurance policy. This means that the policyholder is the one who has entered into a contract with the insurance company, agreeing to pay a premium in exchange for coverage against certain risks outlined in the policy. The policyholder has certain rights and responsibilities, such as the ability to make changes to the policy, file claims, and potentially receive benefits under the terms of the policy.

In contrast, other roles such as a third party designated to receive benefits do not own the policy and simply receive payouts under the policyholder’s agreement. A government representative overseeing claims does not have ownership of the policy and primarily functions to facilitate or regulate the claims process. Similarly, a broker manages multiple policies for various clients but does not own those policies themselves. Understanding these distinctions emphasizes the importance of recognizing who the actual owner of the policy is in any insurance scenario.