What is a policyholder?

A policyholder is defined as a person or entity that owns an insurance policy. This term refers to those who have entered into an insurance contract with an insurer, which obligates the insurance company to provide certain benefits or coverage in exchange for premiums paid by the policyholder. The relationship is critical because the policyholder is the one who benefits from the coverage provided by the policy, whether it be for health, property, liability, or any other type of insurance. Understanding this role is fundamental in insurance practices, as it involves the rights and responsibilities of the individual or entity holding the policy, including the ability to make claims and the obligation to pay premiums to keep the policy in force.