Contract Owner
The party who holds the annuity's rights: naming the beneficiary, choosing payout options, and making withdrawals. May differ from the annuitant.
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Under a life insurance policy, which party has the right to change the beneficiary, assign the policy, and borrow against the cash value?
The policyowner — The policyowner owns the contract and therefore holds the bundle of ownership rights, including naming or changing the beneficiary, assigning or transferring the policy, surrendering it for its cash value, and taking policy loans. These rights belong to the policyowner even when the policyowner is a different person from the insured, who is simply the person whose life is covered. Standard life insurance contracts and California practice treat ownership as controlling, which is why the application must clearly identify who is to be the owner of the policy. The insurer administers the contract but never owns the rights described, and the beneficiary's interest vests only at death. Understanding who holds ownership determines who can exercise every living right under the policy.
National insurance concept
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