Legal Definitions - policyowner

Definition: The term policyowner refers to the person or entity that owns an insurance policy. This can be an individual, a business, or an organization.

Example: John Smith is the policyowner of a life insurance policy that he purchased to provide financial security for his family in case of his unexpected death.

Explanation: In this example, John Smith is the policyowner because he is the one who purchased the life insurance policy. As the policyowner, he is responsible for paying the premiums and making any changes to the policy, such as adding or removing beneficiaries.

Example: ABC Corporation is the policyowner of a group health insurance policy that it provides to its employees as a benefit.

Explanation: In this example, ABC Corporation is the policyowner because it is the entity that purchased the group health insurance policy. As the policyowner, the corporation is responsible for paying the premiums and making any changes to the policy, such as adding or removing covered employees.