Policyholder

A policyholder is the individual or organization that owns an insurance policy and holds the legal rights and responsibilities associated with it. The policyholder is responsible for paying premiums, maintaining coverage, and making key decisions such as naming beneficiaries, adding or removing dependents, or canceling the policy. In return, the insurer is obligated to provide the benefits outlined in the policy contract.

In individual insurance, the policyholder is typically the same person as the insured. In group insurance, the employer or association acts as the policyholder, holding the master policy on behalf of its employees or members, who are covered under it as plan members. The policyholder receives official policy documents, renewal notices, and correspondence directly from the insurer.

Example:

If you buy an individual health and dental plan, you are the policyholder. If your employer offers group benefits, the employer is the policyholder, while you are a covered plan member under the group contract.

What to Watch For:

Keep your policy documents and premium payment records organized and current. If you are a policyholder, promptly update your insurer about changes in address, dependents, or beneficiary designations. In group insurance, remember that employees cannot make major changes to the master policy - only the employer or plan sponsor can modify coverage terms.