Which term describes the individual who owns the policy and holds rights in it?

Which term describes the individual who owns the policy and holds rights in it?

• A. Policyowner
• B. Insured
• C. Broker
• D. Premium

Answer: (A)

The term policyowner describes the person who owns the policy and holds all rights to it. In life insurance, ownership is a separate role from who is insured. The policyowner has control over the policy, including paying premiums, naming or changing beneficiaries, assigning the policy, and borrowing against cash value if the policy has it. The insured is the person whose life is covered by the policy, and they may or may not be the owner. A broker or agent is the person who sells the policy, not the owner. Premium refers to the money paid to keep the policy in force, not to ownership.

The term policyowner describes the person who owns the policy and holds all rights to it. In life insurance, ownership is a separate role from who is insured. The policyowner has control over the policy, including paying premiums, naming or changing beneficiaries, assigning the policy, and borrowing against cash value if the policy has it. The insured is the person whose life is covered by the policy, and they may or may not be the owner. A broker or agent is the person who sells the policy, not the owner. Premium refers to the money paid to keep the policy in force, not to ownership.