Due to a lack of knowledge on insurances, there can be quite some unnecessary disputes after the accident. It is very important that everyone should know exactly what the policyholder, the insured, and the beneficiary is before they purchase any insurance.
1.The policyholder is the person or organization in whose name an insurance policy is registered.
To put it simply, the policyholder is the person who pays the money, the person who pays the premium. The policyholder is the owner of the policy and has the right to surrender and change the beneficiary.
Both natural and legal persons can be insured. Here an explanation must be added.
A natural person, an adult with full capacity for civil conduct, who can read the contract and has the ability to pay premiums.
Minors, persons with intellectual disabilities or mental disabilities who cannot recognize their own behavior, cannot be a policyholder.
A legal person is an enterprise unit, etc. The most common one is that the enterprise buys group accident insurance for its employees, and the enterprise is the policyholder.
2.The insured is the one who has or is covered by an insurance policy.
In layman's terms, the insured is the person protected by the contract. The health status or life of the insured is related to the existence of the contract.
They take their property, life or body as the subject of insurance and have the right to claim insurance money after an insured accident occurs.
The insured may be the same person as the policyholder. The insured can only be a living natural person.
The insured can be either an adult or a child, but in the case of a child, the insurance must be taken out by the parent or guardian.
To become an insured, there is another very important "qualification" is the physical condition.
If there is no problem with the body, it can be covered according to the standard body, but in some cases, the fee may be increased. If the insurance can be covered with an increased fee, it means that the insurance company is still willing to take the risk, which is the best result.
Or it may be postponed and observed for a period of time before the insurance company decides whether it can be covered or not.
Take thyroid nodules as an example, it will usually be excluded. Insurance application may be declined if the insured are diagnosed with hypertension and diabetes, etc.
Therefore, for anyone that might get an insurance in prevention of future risks, should sign an insurance while they are young and in good health.
3.The beneficiary is the person who receives the insurance proceeds from a life insurance policy or annuity. It also can refer to someone who receives benefits from a health insurance policy such as payments for a health care service.
Usually, the beneficiary is the policyholder or the insured themselves. Only in a death contract of life insurance, the beneficiary is a third party other than the insured or the policyholder.
The beneficiary is generally specified in the contract by the policyholder or the insured, and if not specified, the legal heir of the insured is the beneficiary. The change of the beneficiary shall be carried out according to the law and the policyholder shall be notified.