What is the difference between a policyholder and an insured?

In Illinois, insurance regulations are designed to ensure that you have the appropriate coverage to protect yourself, your property, and your finances. When it comes to insurance, there is a distinction between a policyholder and an insured individual. The policyholder is the person or entity that owns the insurance policy. They are responsible for choosing the coverage, paying the premiums, and managing the policy. The policyholder may be an individual, company, or organization. The insured individual is the person or entity that the insurance policy covers. When an insurance policy is taken out, an insured individual is listed in the policy. If a claim is made, the insured person is the one who will receive the compensation from the insurance company. In most cases, the policyholder and insured person are the same, but this is not always the case. For example, a parent may be the policyholder, and their child may be the insured individual in a life insurance policy. In general, the policyholder is responsible for the policy, while the insured is the one who will receive the benefits.

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What is the difference between a policyholder and an insured?

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