What defines the insured in an insurance policy?

In an insurance policy, the insured refers to the individual who is covered by the policy. This means that the insured is the person whose life or health is the subject of the coverage, and benefits are paid out upon the occurrence of the stipulated events, such as death, in the case of life insurance.

Understanding this concept is crucial because it differentiates between the various parties involved in an insurance transaction. While the policy owner may pay premiums and have control over the policy, and the applicant may be responsible for providing information for underwriting, it is ultimately the insured who is the focus of the coverage and the recipient of the benefits outlined in the policy. Thus, recognizing that the insured is strictly the individual whose risk is being managed through the policy underscores the core purpose of insurance.