policyholder
POL-uh-see-hohl-der
/ˈpɒlɪsiˌhoʊldər/
The individual or entity that owns the insurance policy and is responsible for paying the premiums.
The policyholder is the contract owner. They may or may not be the only person covered by the policy (for example, a parent is the policyholder, but their teenage children are also covered drivers).
The story behind the word. The word 'policy' in insurance does not come from 'politics' or 'police'. It comes from the Italian 'polizza', which was a medieval receipt or written proof of a transaction. A 'policyholder' is literally the person holding the receipt of the protective agreement.
Word relationships
- insured: The 'insured' refers to anyone protected by the policy, while the 'policyholder' is specifically the person who owns and pays for the contract.
- subscriber: Subscriber is typically used in health insurance or group plans, whereas policyholder is standard for auto and home insurance.
- insurer: The insurer is the company providing the coverage, while the policyholder is the customer purchasing it.
Commonly confused with
- underwriter: The policyholder is the customer who buys the policy; the underwriter is the professional who decides whether to sell it to them.
Word family
- policyholders (noun plural): Multiple owners of insurance contracts.
Collocations
- active policyholder
- policyholder rights
- policyholder surplus
- notify the policyholder
Example sentences
- "The policyholder contacted her agent to update her home address after moving to a new city." Customer Service
Memory hook
The 'policyholder' is the person who 'holds' the insurance 'policy' in their hands. The holder of the contract.
When not to use
Do not confuse with 'beneficiary', who is the person designated to receive payouts (especially in life insurance), whereas the policyholder manages the contract.
Fun facts
- In early insurance history, policyholders had to physically present their paper policy document to the company's headquarters to receive a claim payout.
Related words
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