Who holds the ownership rights under a life insurance policy?

The ownership rights under a life insurance policy are held by the policyholder. The policyholder is the individual or entity that has entered into the contract with the insurance company and is responsible for paying the premiums. As the owner of the policy, the policyholder has the authority to make significant decisions regarding the policy. These include the ability to change the beneficiary, borrow against the policy's cash value (if applicable), or surrender the policy altogether. This ownership is crucial because it defines who has control and rights concerning the benefits of the policy.

Other parties mentioned do not possess these rights in the same manner. The insured is the person whose life is covered by the insurance but may not necessarily hold ownership rights; this individual can be different from the policyholder. The beneficiary is designated to receive the benefits upon the insured's death, but they do not have any ownership rights until a claim is made. An underwriter is an individual or entity responsible for evaluating and assuming the risk of insuring clients, but they do not hold rights related to the ownership of the policy itself. This distinction underscores the essential role of the policyholder in managing the life insurance contract.