Who is the person or entity that owns an insurance policy, also called the policy owner?

• A. Insured
• B. Policyholder
• C. Beneficiary
• D. Insurer

Answer: (B)

Ownership means who controls the policy and has the rights to it. The policyowner is the person or entity that owns the contract, pays the premiums, and can make key decisions such as who will receive the benefits, whether to borrow against cash value, or to surrender the policy. The insured is the person whose life or health is covered, and the beneficiary is the person who will receive the payout when a claim is paid. The insurer is the company that issues the policy. Because ownership centers on control and maintenance of the policy, the correct answer is the policyowner.