Who is referred to as the consumer that purchases an insurance policy?

The consumer who purchases an insurance policy is referred to as the policyholder. This term describes the individual or entity that enters into a contract with the insurance company, agreeing to pay premiums in exchange for coverage provided by the policy. The policyholder has the rights to make changes to the policy, such as adding or removing coverage, and is primarily responsible for the obligations defined in the policy, including payment of premiums.

The other terms, while related to the insurance context, denote different roles. The beneficiary is the person or entity designated to receive benefits from the policy upon the occurrence of a specific event, such as a death benefit in life insurance. The underwriter is the professional responsible for assessing risk and determining the terms and pricing of insurance policies. The insured refers to the party covered by the insurance policy, which may or may not be the same as the policyholder, depending on the policy's structure. Understanding these distinctions is crucial for comprehending the roles in an insurance transaction.