Who can own a life insurance policy?
There are a number of choices for who can own a policy but every policy has an owner. The owner is the person who has control of the policy during the insured’s lifetime. They have the power, if they want, to surrender the policy, to sell the policy, to gift the policy, to change the policy death benefit beneficiary.
What is the policy owner’s role in the insurance industry?
As a policy owner, you have the authority to perform a number of actions that directly impact the operations of the policy, like increasing or decreasing the amount insured or cancelling the policy altogether. It’s important to note that if the life insured is not the policy owner; they do not have to be informed of any of these changes.
Can an insurance agent write his own policy?
Because of the pay structure and nature of the business, an insurance agent can write his own policy, and there are some advantages in doing so. That's not to say the situation is without its challenges. Commissions on the sales of life insurance are impressive, often as high as 45 or even 50 percent of the annual premium for the policy.