In order to understand an insurance policy it is necessary to identify the personal elements of the insurance contract. There are four these personal elements: insurer, policyholder, insured and beneficiary. In this post we will explain what is meant by policyholder in an insurance policy.
When we talk about the policyholder of an insurance policy we are referring to the person who takes out insurance with an insurance company….
The policyholder is the person who signs the insurance contract, and thereby assumes its own obligations. Among the obligations of the policyholder, the main obligation is the payment of the premium to the insurance company, that is, the price paid by the policyholder to the company in exchange for the contracted product.
To understand the figure of the policyholder, it is important to distinguish it from that of the insured and beneficiary: while the insured is the person on whom the risk falls; The beneficiary is the person to whom the insurer will pay compensation in the event of the insured event. Let us therefore say that the policyholder is the one who contracts the insurance, although he or she may be both the insured and the beneficiary.
In other entries we explain the figures of Insured y Beneficiary