Who is considered the insured in a life insurance policy?

In a life insurance policy, the insured is the individual whose life is covered by the policy. This means that when the policyholder takes out a life insurance policy, they are essentially securing a financial payout that will be distributed upon the death of the individual insured. This distinguishes the insured from other parties involved in the policy, such as the policyholder, who may simply be the one paying the premiums, or the beneficiary, who is designated to receive the death benefit once the insured passes away.

Understanding this distinction is crucial because it determines who the actual risk is associated with in the policy. The terms and provisions of the policy, coverage amounts, and payout conditions all center around the life of the insured individual. This role is fundamental in the context of life insurance as it directly impacts underwriting considerations and premium calculations.