Co-Founder, Coastal Financial Partners Group, California
An owner of a life insurance policy pays premiums and controls the rights in the policy such as the right to name and change beneficiaries. An owner has an asset in the cash values of permanent life insurance that can be used as collateral for a loan. The owner can borrow from the policy.
The owner of the life insurance policy "owns" the policy and has the right to control it. The owner does not have to be the insured person; in fact, the policy owner may be a business or trust. The owner also does not have to be the payor. However, the owner could change beneficiaries or make other decisions for the policy that the payor did not intend, so normally those two roles coincide.
Finally the owner may be the beneficiary; or the beneficiary may be a grandchild, a charity, an employees family, or whoever the owner desires to receive the money upon the death of the insured.
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Finally the owner may be the beneficiary; or the beneficiary may be a grandchild, a charity, an employees family, or whoever the owner desires to receive the money upon the death of the insured.