Who is considered the "insured" in an insurance policy?

In an insurance policy, the "insured" refers to the individual or entity that is protected under the terms of the policy. This means that the insured is the person who would receive benefits or compensation from the insurance company in the event of a covered loss or event, such as an accident, illness, or property damage.

This distinction is critical because it establishes who is the primary subject of coverage. While the policy owner might be different from the insured (for example, a parent may own a policy on their child's life), the insured is the one whose risk is being mitigated through the insurance contract.

Understanding the role of the insured helps clarify the functions of other parties involved in an insurance policy. The policy owner, who may or may not be the insured, is responsible for premium payments and managing the policy. The insurance company is the entity that offers the coverage and manages claims. Lastly, a beneficiary is someone designated to receive the benefits from the policy, typically in life insurance cases, but not the primary person covered.