Who Is the Insured on a Life Insurance Policy?
Plain-English definition: The person whose life is covered. The insured does not automatically own or control the policy.
The life the policy actually covers
The insured is the measuring life for the contract. Health history, age and other permitted underwriting facts usually relate to this person, but control of the policy can sit with somebody else.
Insured does not mean policy owner
The insured is not automatically the policy owner. Ownership determines contract rights, while the insured's death is the event measured for the death benefit.
A policy with three different people
Owner, insured and beneficiary in one household
A parent can own a policy on an adult child when insurable-interest and consent rules are satisfied. The child is the insured, the parent is the owner and a family trust may be the beneficiary.
Confirm the insured before signing
- Confirm the insured's legal name and date of birth
- Do not assume the insured can change beneficiaries
- Check whose consent and signature the application requires
Follow the other people in the contract
Use life insurance owner vs insured person to see how this definition affects a real policy decision.
Terms to read alongside insured
Sources for understanding insured
This page explains general insurance usage. State law, the issued contract and the insurer's current records control a specific policy. Use the sources below to verify general terminology, then check the exact policy language.