Policy Owner

The policy owner is the person or entity that owns a life insurance policy — holding all contractual rights including the right to name and change beneficiaries, take policy loans, surrender the policy, assign ownership, and make coverage elections. The policy owner is not always the same as the insured (the person whose life is covered) or the beneficiary (the recipient of the death benefit). A business may own a policy on an employee's life (key person insurance); a trust may own a policy on an individual (ILIT); or a parent may own a policy on a child. The policy owner pays the premiums unless a separate payor rider is in effect.