A "Policyholder" in the context of Life Insurance and Living Benefits (such as Disability Insurance, Critical Illness Insurance, Long-Term Care Insurance, Health Insurance, and Travel Insurance) is the individual or entity that owns the insurance policy. This person or entity has entered into a contractual agreement with an insurance company, under which the insurer agrees to provide specified financial protection or benefits in exchange for the payment of premiums. The policyholder is responsible for maintaining the policy by paying these premiums and has the authority to make changes to the policy, designate beneficiaries, and file claims as specified under the terms of the policy.

Key responsibilities and rights of a policyholder include:

  1. Premium Payments: The policyholder is responsible for making regular premium payments to keep the insurance policy active and ensure continuous coverage.
  2. Beneficiary Designation: In life insurance policies, the policyholder has the right to designate one or more beneficiaries who will receive the policy's death benefit upon the insured's death.
  3. Policy Management: The policyholder can make changes to the policy, such as updating personal information, changing coverage amounts, adding or removing riders, or adjusting the beneficiary designations, subject to the terms and conditions of the policy.
  4. Filing Claims: The policyholder (or the designated beneficiary in the case of life insurance) is responsible for filing claims to receive the benefits provided under the policy in the event of a covered loss or event.
  5. Transfer of Ownership: Depending on the policy's terms, the policyholder may have the right to transfer ownership of the policy to another individual or entity.
  6. Rights to Policy Values: In policies with a cash value component, such as certain types of permanent life insurance, the policyholder has rights to the policy's accumulated cash value, which can be accessed through loans or withdrawals under the terms specified in the policy.

The policyholder plays a central role in the insurance relationship, bearing both the responsibilities of maintaining the policy and the privileges of benefiting from its coverage. In life insurance and living benefits policies, the policyholder's decisions and actions directly impact the coverage's effectiveness and the financial security it provides to the insured and their beneficiaries.

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