What Is Policy Owner? Definition

Why it matters

Ownership matters most for taxes, estates, and control. If you own a policy on your own life, the death benefit may be counted in your estate under federal and state rules. Some families use a trust as owner for that reason. Agents should confirm who owns the policy during the application, because the owner signs forms and receives notices. Ask a tax or legal professional about your case.

Source: law.cornell.edu

Where we use this term

Related terms

Policyholder: A policyholder is the person or entity that holds the insurance contract and has the rights under it. In most cases the policyholder is the same as the policy owner and often the insured.
Insured: The insured is the person whose life the policy covers. The death benefit is paid when the insured dies, and the insured's health, age, and habits drive underwriting and price.
Beneficiary: A beneficiary is the person or organization the policy owner names to receive the death benefit when the insured person dies. A policy can name one or several beneficiaries and can split the payout by percentage.
Estate: An estate is everything a person owns at death, including property, bank accounts, and investments, minus debts. It is handled under a will or state law.
Legacy Planning: Legacy planning is the process of deciding how your assets, wishes, and values pass to people and causes you care about. It often includes a will, beneficiaries, and insurance.

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Why it matters

Where we use this term

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