Difference Between the Policyholder and Insured in Life Insurance

What is a Policyholder?

Who is an Insured?

Is the Named Insured the Same as the Policyholder?

What is the Difference Between Policyholder and Insured?

Differences between a policyholder and an insured are as follows:

Aspects Policyholder Insured
Definition 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.
Objective Only if a policyholder is an insured person will the beneficiary get the entire sum assured on the death of that insured person (policyholder). The beneficiary receives the full coverage money on the insured person's death.
Role 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 for an insurer, such as a PAN card. The insured person’s name cannot be changed, as the insurer decides the premium amount of a policy, considering factors like age, lifestyle, and medical history.

What are the Duties and Responsibilities of an Insured Person?

What are the Rights of a Policyholder?

FAQs about Policyholder vs Insured

Can two persons be chosen as insured?

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

Are policyholders and insured persons the same?

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No. In some cases, the policyholder and insured can be different from one another. For instance, if you purchase an insurance policy for one of your family members, you will be the policyholder, and that person will be the life insured.

Can a policyholder be a beneficiary?

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A policyholder is considered the policy's owner. In most 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?

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

Who are the policyholder and the insured person also known as?

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The policyholder is also known as an insurance subscriber, while the insured person is often called secured, pledged, or vouched for.

What is the difference between policyholder and life assured?

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In a life insurance policy, the policyholder owns the policy and pays the premiums. They are responsible for managing the policy, including making changes and decisions. The life insured, also known as the insured, is the person whose life is covered by the insurance policy. In other words, they are the individual on whose death the insurance benefit is paid out to the designated beneficiaries.

Who is insured by a life insurance policy?

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The insured in a life insurance policy is the person whose life is covered by the policy. The insurance company bases the risk assessment for determining premiums and coverage amounts on this individual. The policy's benefits are paid out to the beneficiaries upon the insured's death, as stipulated in the policy terms.

Is the policyholder insured?

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In a life insurance policy, the policyholder and the insured can be the same or different individuals. The policyholder is the policy owner and may or may not be the person whose life is insured. They are responsible for paying premiums and managing the policy if they are the same person. If they differ, the policyholder manages the policy while the policy covers the insured's life.

What do you mean by insured?

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In life insurance, the term "insured" refers to the individual whose life is covered by the insurance policy. The insurance company assesses the risk associated with the insured's life to determine the premium amounts and the coverage benefits payable upon the insured's death.

What is another name for a policyholder?

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Another name for a policyholder in life insurance is the "policy owner" or "policyholder." They are the individuals who purchase the policy from the insurance company and are responsible for paying premiums, managing the policy terms, and ensuring it remains in force according to the agreed-upon conditions.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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