What is the Difference between the Policyholder and Insured?

What is a Policyholder?

What is Insured?

Difference between Policyholder vs. Insured

Differences between a policyholder and an insured are as follows:





The policyholder or policy owner is an individual who plans and buys a policy.

The individual who gets life coverage against risks as per the policy is an insured person.


Only if a policyholder is an insured person, the beneficiary will get the entire sum assured on the death of that insured person (policyholder).

The beneficiary receives the full coverage money on the death of the insured person.


The policyholder decides the ‘nominee’ or beneficiary.

The insured person may be the policyholder or may be decided by a policyholder.

Changing of Policy

The policyholder's name can be changed by producing necessary documents to an insurer like a PAN card etc.

The insured person’s name cannot be changed as premium amount of a policy is decided by the insurer considering factors like age, lifestyle and medical history of the insured person.

What Are the Duties and Responsibilities of an Insured Person?

What Are the Rights of a Policyholder?

Frequently Asked Questions

Can two persons be chosen as insured?

Yes, two individuals can become insured when it comes to life insurance. Generally,in joint insurance policies, two people are insured under the same life insurance plan.

Are policyholders and insured persons the same?

No. Policyholder and insured need not be the same person in some cases. For instance, if you purchase an insurance policy for one of your family members, then you will be the policyholder, and that person will be the life insured.

Can a policyholder be a beneficiary?

Primarily, a policyholder is considered the owner of the policy. In maximum cases, a policyholder and insured are the same individual. However, there are some cases when a policyholder is a beneficiary.

Who can be the policyholder in an insurance plan?

A policyholder is a person who generally gets the eligibility for coverage. In an insurance plan, a policyholder can be a spouse, parent, child, domestic partner, etc.