Who is responsible for paying the premium in an insurance policy?

In an insurance policy, the premium payor is the individual or entity responsible for making the premium payments to keep the policy active. This can be the policyholder themselves, or in certain situations, another person such as a family member or a business. The premium payor may not always be the same as the policyholder or the insured individual; they are specifically designated to ensure that the financial obligations of the policy are met.

This is crucial because the premium must be paid on time to maintain the coverage and avoid any lapse in the policy. If premiums are not paid, the insurance may become inactive, which can leave the insured without critical coverage at the time it is needed. Understanding the role of the premium payor helps clarify the financial responsibilities associated with an insurance policy, which is essential for all parties involved.