Which term describes the person who may be the policyowner and holds the policy's rights?

Which term describes the person who may be the policyowner and holds the policy's rights?

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

Answer: (D)

In life insurance, the person who owns the contract and controls it is the policyowner. This individual holds all the rights under the policy, such as naming or changing the beneficiary, deciding who pays the premiums, and making other policy changes or transfers. The insured is the person whose life is covered by the policy, and they may or may not be the same person as the policyowner. A broker is the agent who sells the policy, while the insurer is the company that issues the policy, and the premium is the payment required to keep the policy in force. So, the one who may be the policyowner and holds the policy’s rights is the policyowner.

In life insurance, the person who owns the contract and controls it is the policyowner. This individual holds all the rights under the policy, such as naming or changing the beneficiary, deciding who pays the premiums, and making other policy changes or transfers. The insured is the person whose life is covered by the policy, and they may or may not be the same person as the policyowner. A broker is the agent who sells the policy, while the insurer is the company that issues the policy, and the premium is the payment required to keep the policy in force. So, the one who may be the policyowner and holds the policy’s rights is the policyowner.