Who is the person or entity that is covered by an insurance policy called?

The term used to refer to the person or entity that is covered by an insurance policy is known as the insured. This designation is crucial because it specifies which individual or entity is protected under the terms of the insurance contract.

In the context of life insurance, the insured is the individual whose life is being insured, meaning that the policy pays out a benefit upon the death of this person or provides other financial protection as described in the policy. This designation is foundational to understanding how the insurance operates and under what circumstances benefits will be paid.

While the policyholder is the person or entity that owns the policy, they may or may not be the same as the insured. The beneficiary is someone designated to receive the benefits from the policy upon the insured's death, and the contract holder is a less common term that can vary in meaning depending on the type of insurance. In essence, the focus on the insured highlights who is directly affected by the policy's coverage.