Yuba City Life Insurance Agency Explains Policy Ownership

 

With a life insurance policy, the focus is often on the insured (the person whose life is covered by the policy) and the beneficiary (the person who receives money if the insured dies while the policy is in force). The third role associated with life insurance is that of the policy owner also called the policyholder. As we tell people at our Yuba City life insurance agency, if you are considering buying a policy, it is important to understand your role as the owner.

Ownership Rules

There are very few restrictions around owning a life insurance policy. Any adult or legal entity can have life insurance on another person. The only requirements are that there is what’s called an insurable interest (meaning the death of the insured would negatively impact the other party) and mutual consent. The most common life insurance scenario involves one spouse having life insurance on the other, so that the surviving spouse won’t suffer financial hardship if their partner dies.

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