What is a 'policyholder'?

The term 'policyholder' refers specifically to the individual or entity that owns an insurance policy. This person or organization is the one who has entered into a contract with the insurance company and is responsible for paying the premiums associated with that policy. As the owner, the policyholder has specific rights concerning the policy, including the ability to make changes to it, cancel it, or designate beneficiaries.

In contrast, other roles such as an insurance agent, beneficiary, or third party involved in claims do not hold ownership over the insurance policy itself. An insurance agent facilitates the sale of the policy but does not own it; the beneficiary is designated to receive benefits under the policy but does not have ownership rights; and a third party may be involved in the claims process but does not have an ownership stake either. Understanding the distinction between these roles is crucial for clarity in insurance terminology and for comprehending the responsibilities and rights associated with an insurance policy.