Who is the insurance policyholder? Understand better about it!

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Who is the insurance policyholder? Understand better about it!

Knowing who the policyholder is is essential for collective negotiations, and makes this process more organized. Learn more about this function!

Do you know who is the life insurance stipulator? This figure will not always be present in the policy negotiation, but he can be an important pillar of the contract.

Most of the time, the holder seeking more complete protection for everyday life, contacts the insurer, or contracting directly through an insurance broker.

However, some product categories are designed to serve more than one person, and require a person in charge capable of managing the details of the contract, so that it serves everyone involved.

For this reason, it is essential to know who is the policy holder and what their responsibilities are under the policy. Keep following to check out more about this feature!

What is the policyholder in insurance?

The life insurance policyholder is a person who represents a group of policyholders when taking out a policy.

In other words, it is an intermediary that negotiates the protection clauses of collective insurance, generally carried out by companies.

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As group insurance considers a single contract for several people, administration is more difficult if everyone is responsible for negotiating the clauses. For this reason, there is a legal representative who mediates this hiring.

This function is usually known as the third party of the negotiation, as it does not refer to the final insured person, nor to the insurer, being responsible for contracting and eventual administration of this product.

Who is the policyholder in the life insurance policy?

The life insurance policyholder can be any natural or legal person, as determined by SUSEP. However, there are some restrictions. This function cannot be exercised:

  • By the insurance broker, including partners, directors or representatives;
  • By a contracted insurance broker or company partner;
  • By an insurance company or its partners.

In most cases, the life insurance policyholder is a legal entity associated with the collective that will be insured, such as the contracting company or union.

These people become responsible for intermediating the operation, but their role is limited to choosing policies and offering support to the insured.

There are no legal impediments for this person to be physical, but it is uncommon, especially in the life and health policy segments.

What is the difference between applicant and policyholder of insurance?

The stipulator is responsible, generally legal, for the elaboration of collective insurance, responsible for taking care of the main stages of the contract, from the choice of insurance, to communicating those involved.

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Meanwhile, the proposer is the person who requests and receives a proposal for contracting insurance.

In practice, the stipulator and the proponent may be the same person, but at different times during the contract.

What is the difference between a policyholder and an insurance broker?

The difference between policyholder and insurance broker is the role each party can play in relation to the insurer and the policy.

At first, the policyholder has no relationship with the company, being just the pillar that communicates with the insurer and takes care of details, such as coverage, clauses and insured capital. This happens because, normally, a company that is contracting insurance for its employees.

On the other hand, the insurance broker is responsible for assisting the insured or the policyholder in their contracting journey, to understand which are the best Insurers and products for their profile.

What does the insurance policyholder do?

Whoever is a life insurance policyholder has several functions related to the policy and the details of the protection. See some of the activities he must perform:

Payments to the insurer

The policyholder is the person who pays premiums to the insurer after contracting.

That is, he must keep the insurance in force every month, paying the combined monthly fees at the time of the contract.

Even if the group insurance has the financial participation of the insured, for example, this value is not passed on directly, but rather through intermediation by this third party in most cases.

Insurance quotation and negotiation

In addition, from the beginning of the contracting process, those who purchase life insurance must be concerned with quotes and negotiating the policy, with the support of an insurance broker.

Its role is to find the best type of insurance and the best offer to meet the collective interests, in addition to indicating the desired coverage, payment terms and others.

Update of contracts

Since group insurance involves more than one insured, it is up to the policyholder to update the contracts according to movements.

For example, if a company employee was fired or was hired, this information must be passed on by the policyholder to the insurer.

In addition, all changes to data on insured persons or their beneficiaries must be notified by the policyholder, in order to make the process more organized.

Transfer of information to policyholders

Also, one of the roles of the policyholder is also to pass on information to policyholders, informing them about the policy, coverage and other relevant details, such as grace period and risks.

In this way, the protected persons will be able to be aware of this, and monitor any changes in the rules, exceptions or costs of the contract.

In what types of insurance does the policyholder usually appear?

The responsible person who assumes the role of policyholder of life insurance is usually designated in collective agreements, especially life and health policies in companies.

In practice, negotiations involving more than one person may have a mediator who represents their interests and takes care of product details.

For this reason, if you are in doubt as to whether you are part of collective coverage, it is essential to know who is the insurance policyholder, in order to resolve these doubts.

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