Who is the person covered by the policy and may or may not be the policyowner?

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Multiple Choice

Who is the person covered by the policy and may or may not be the policyowner?

The person the policy protects is the insured. In life insurance, the insured is the individual whose life is covered and on whose death the death benefit is paid. That person may or may not be the policyowner—the owner is the one who controls the policy, names beneficiaries, and usually pays the premium, but ownership and being insured don’t have to be the same. The insurer is the company issuing the policy, and the premium is the ongoing payment to keep the coverage active. So, the person covered by the policy, who may or may not be the policyowner, is the insured.

The person the policy protects is the insured. In life insurance, the insured is the individual whose life is covered and on whose death the death benefit is paid. That person may or may not be the policyowner—the owner is the one who controls the policy, names beneficiaries, and usually pays the premium, but ownership and being insured don’t have to be the same. The insurer is the company issuing the policy, and the premium is the ongoing payment to keep the coverage active. So, the person covered by the policy, who may or may not be the policyowner, is the insured.

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