There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy on his life, he is both the owner and the insured. But if Jane, his wife, buys a policy on the life of Joe s, she is the owner and he is insured. The policy owner is the guarantee and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party. But insurance value of interest is necessary to u200b u200bniet independent party to limit the taking of life, for example, Jane or Joe. Also, most companies let u200b u200bdat payer and owner to be different, such as a parent to pay a large premium for a policy on a child, a grandchild of property [or vice versa].
The recipient receives the policy death of the insured. The owner shall designate the holder, but the recipient is not involved in politics. The owner can change the recipient unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to the receiver changes, policy assignments, or cash value borrowing.
In cases where the policy owner is not insured (also known as qui vit or celui CQV), the insurance policy required to limit purchases to those with insurance value of interest in CQV. Life insurance, close relatives and business partners will usually be found for a u200b u200bverzekerbaar interest. It insurance value of interest requirement usually indicates that the buyer is actually a form of loss incurred if CQV door. Such a requirement prevents people from benefiting from the purchase of pure speculative policies on people they expect to die. With no insurance value of interest requirements, continuing the risk that a buyer would CQV insurance murder fantastic. In at least one case, found an insurance company that a policy be sold to a buyer who is not an insurance value of interest (who later murdered CQV on revenues), liable in court for contributing to the wrongful death of the victim (Liberty National v Life. Weldon, Ala.171 267 (1957)).
