Who is a party to a life insurance contract?

• A. The policyowner
• B. A third-party beneficiary named in the policy
• C. Both the policyowner and a third-party beneficiary named in the policy
• D. Neither the policyowner nor a third-party beneficiary named in the policy

Answer: (A)

The key idea is who actually signs and holds the rights in a life insurance contract. The contract is formed between the insurer and the policyowner. The policyowner is the person who owns the policy, pays the premiums, and can name or change beneficiaries, make assignments, and otherwise control the policy. The person whose life is insured is the subject of the contract, but they aren’t necessarily a contracting party unless they also own the policy. A third‑party beneficiary named in the policy is designated to receive the proceeds, but they did not sign the contract and do not hold the policy’s ownership. So the policyowner is the party to the contract.