Who is considered the policyowner of an insurance policy?

The policyowner of an insurance policy is defined as the individual who possesses ownership rights to the policy. This includes the authority to make changes to the policy, such as altering coverage amounts, selecting beneficiaries, or even cancelling the policy. The policyowner is not solely determined by who applied for the insurance; rather, it's about the rights and responsibilities held over the policy once it is issued.

While the individual who applies for insurance may often be the policyowner, it's crucial to recognize that this is not always the case. In some scenarios, the applicant may take out a policy on behalf of another person but does not retain ownership rights. Therefore, focusing on ownership rights clarifies the distinction between the roles involved in the insurance process.

The insurer is the company providing the policy and does not hold ownership rights. Likewise, the beneficiary is the person or entity designated to receive the benefits of the policy upon the insured event but does not have ownership rights to the policy itself. This distinction is key in understanding the responsibilities and authorities associated with an insurance policy.