Who is responsible for paying the insurance premium?

The policyholder is the individual or entity that owns the insurance policy and has the primary responsibility for paying the insurance premium. This means that regardless of who may benefit from the policy upon the occurrence of an insured event, such as the insured individual or the beneficiary, it is the policyholder who enters into the contract with the insurance company and is financially responsible for maintaining the policy by making premium payments.

This responsibility is crucial because if premiums are not paid, the policy may lapse, and coverage can be lost. Understanding this role is key for anyone studying insurance, as it lays the foundation for the rights and obligations that come with holding an insurance policy.