What is the difference between the policyholder , the insured and the beneficiary of an insurance ? Should the policyholder be the insured person or the beneficiary? Are the beneficiary and insured always the same person?

When hiring insurance, it is important to be clear about these concepts. We are going to help you understand them.

There are several differences between the three figures. The policyholder is the person who contracts the insurance, that is, the policy appears in his name and it is he who pays the premium to the insurance company. However, he does not have to be either the insured person or the beneficiary

The policyholder, who can be both a natural person and a legal person, is the one who can designate the beneficiaries who will receive the compensation from the insurance company in the event of a claim. In addition, he can modify this assignment as many times as he wants, always in accordance with the conditions agreed in the policy, renew the insurance or interrupt its renewal.

The insured is the person whom the insurance protects. In this case, the beneficiary would be the person who would receive compensation in the event of an accident. In most cases they are the same person, but in insurance that covers the death of the insured, the beneficiary is another person chosen by the policyholder at the time of signing the policy.

Can the policyholder, the insured and the beneficiary be the same person?

Although on many occasions the policyholder, the insured and the beneficiary in Nigeria are the same person, on other occasions the policyholder and the insured, or the insured and the beneficiary, coincide. When we talk about insurance that covers the death of the insured, there may be several different people representing those figures.

Examples of insurance and their policyholders in Nigeria 

 

In life insurance, it is common for the policyholder to be the insured person himself, who wants to cover his death to leave financial compensation to a beneficiary. In the case of life insurance that some companies pay their employees, the policyholder is the company and the insured is the employee. It may also be the case that the policyholder is different when the life insurance is contracted by a person to cover the death of their partner or their children.

In car insurance, in the case of a vehicle shared by a family, it is usual for the policyholder to be one of the parents and the insured, the parents and the children. In this way, in the event of an accident, the accident is covered as this is one of the insured.

In health insurance, the same thing happens as in life insurance. The policyholder may or may not be the same person as the insured. It is often a company in the case of insurance offered to workers as part of the salary or as part of a flexible compensation program.