Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In an individual life insurance policy, the person whose life is insured and whose death triggers payment of the death benefit is the:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The insured is the person whose life is covered by the policy; the death benefit is payable upon the insured's death. The applicant is the person who applies for the policy, the policyowner is the person who owns and controls the contract, and the beneficiary is the party entitled to receive the death benefit. Although the applicant is often also the insured and the policyowner, each role is a distinct legal position in the contract.
Why the other options are wrong
- B) The policyowner is the person who holds the contractual rights, such as changing the beneficiary or borrowing against the cash value, not the person whose life is covered.
- C) The beneficiary receives the death proceeds after the insured dies; the beneficiary's life is not the subject of the coverage.
- D) The applicant merely applies for the policy and may be a different person from the insured, such as a parent applying for a policy on a child.
Memory hook
Insured = the life in question. Owner = the one in charge. Beneficiary = the one who gets the money.