Who is the policyowner?

Who is the policyowner?

• A. The insured
• B. The beneficiary
• C. The policyowner is the individual who has the ownership rights of an insurance policy.
• D. The insurer

Answer: (C)

Ownership rights in a life insurance policy rest with the policyowner—the person who holds the rights to control the policy. The policyowner can decide who the insured is (at issue or later if allowed), how the policy proceeds are handled, who receives the death benefit, and how premiums are paid. They can name the beneficiary, change it later (subject to any irrevocable beneficiary limitations), assign the policy, borrow against any cash value, or even surrender the policy for its cash value. The insured is the person whose life is covered by the policy, and the beneficiary is who receives the death benefit. The insurer is the company issuing the policy. In many cases the policyowner and the insured are the same person, but they can be different.

Ownership rights in a life insurance policy rest with the policyowner—the person who holds the rights to control the policy. The policyowner can decide who the insured is (at issue or later if allowed), how the policy proceeds are handled, who receives the death benefit, and how premiums are paid. They can name the beneficiary, change it later (subject to any irrevocable beneficiary limitations), assign the policy, borrow against any cash value, or even surrender the policy for its cash value. The insured is the person whose life is covered by the policy, and the beneficiary is who receives the death benefit. The insurer is the company issuing the policy. In many cases the policyowner and the insured are the same person, but they can be different.