What is the difference between a policyholder and an insured?

The difference between a policyholder and an insured in Mississippi is that a policyholder is the individual or organization who purchases an insurance policy, while an insured is the person or entity covered by the policy. In other words, the policyholder is the one who originally purchased the insurance policy, while the insured is the person or entity that will receive the protection and benefits of the insurance policy. For example, if a person in Mississippi purchases a health insurance policy, then that person is the policyholder. However, if the policyholder’s spouse or dependent is also listed on the policy, then those individuals are the insured ones. It is important to remember that the policyholder and the insured are not always the same person. Generally, the insured person is the one who is at risk of having to pay the costs of a claim. Meanwhile, the policyholder is responsible for paying the insurance premiums and following the terms of the policy. It is important for policyholders and those who are insured to understand the difference between the two, so that they can be aware of who is ultimately responsible for the costs of a potential claim that needs to be made in Mississippi.

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