What does it take to be a policyholder or an insured?


The reason why people buy insurance lies in that insurance can not only provide security, but also carry out risk planning and reasonable allocation of funds. For example, serious illness insurance can protect major diseases, accident insurance can protect accidental injuries, annuity insurance can be used for financial management, and spare money on hand can be reasonably allocated. Of course, everyone may buy insurance for different reasons, so everyone should choose the appropriate type of insurance according to their own needs.


Before buying any insurance, one must understand the differences between a policyholder and an insured, knowing what it takes to be the policyholder or the insured.


In order to be eligible for a policyholder, the following conditions must first be met:


1. The policyholder possess the corresponding rights and capacity for action.

According to the "General Principles of Civil Law", adults over the age of 18 and persons over the age of 16 who have full capacity for civil conduct, can become a policyholder in an insurance contract. Minors over the age of 16 but under the age of 18, patients with mental illness who cannot identify their own behavior or fully identify their own behavior cannot be a policyholder since they are with limited or no capacity for civil conduct.


2. The policyholder has an insurable interest in the subject matter of insurance.


3. The policyholder fulfills the obligation to pay the insurance premium.


If you do not meet the above conditions, you cannot insure yourself or others.  However, it is not so easy for the policyholder to specify or change matters concerning the interests of the insured.


In order to be eligible for an insured, the following conditions must first be met:


1. Their body or property is protected by the insurance contract.


2. They have the right to claim compensation. In order to protect the interests of the policyholder, the Insurance Law clearly stipulates:

 (1) When the policyholder is not the insured, the insured must agree to designate or change the beneficiary.

 (2) For an insurance contract with death as the condition for paying insurance money, the policyholder must obtain the consent of the insured for the type of insurance, the amount of insurance, and the transfer and pledge of the insurance contract must also be approved by the insured, otherwise the insurance contract is invalid, and the transfer and pledge are also invalid.


However, parents who insure their minor children are not subject to this restriction, but the sum of the death benefit insurance amount shall not exceed the limit set by the financial supervision department.


To put it simply, the policyholder must not make any changes without the consent of the insured, and the insured has the right to claim compensation.


Therefore, the policyholder and the insured complement each other. If it is feasible for the policyholder to ignore the consent of the insured, then the meaning of the insured's existence is lost.