Life Insured

The "Life Insured" refers to the individual whose life is covered under a life insurance policy. This person's death triggers the payment of the death benefit to the designated beneficiaries as specified in the policy terms. The life insured is the focal point of the insurance contract, and the coverage is primarily intended to provide financial protection and security to the beneficiaries by compensating for the income loss and covering financial obligations or expenses in the event of the life insured's death.

Key points about the life insured include:

1. Policyholder vs. Life Insured: While the policyholder is the person or entity that owns the life insurance policy and is responsible for paying the premiums, the life insured is the individual whose life is covered by the policy. The policyholder and the life insured can be the same person (e.g., an individual purchasing a policy on their own life) or different individuals (e.g., a spouse purchasing a policy on their partner's life).
2. Underwriting Process: The life insured's health, age, lifestyle, and other factors are evaluated during the underwriting process to determine the risk of insuring their life and to set the premium rates for the policy.
3. Beneficiaries: Upon the death of the life insured, the death benefit is paid out to the beneficiaries named in the policy. These beneficiaries can be individuals, such as family members, or entities, such as trusts or charities.
4. Types of Coverage: The life insured can be covered under various types of life insurance policies, including term life insurance, which provides coverage for a specified term, and permanent life insurance, such as whole life or universal life, which provides lifelong coverage and may include a cash value component.

The designation of the life insured is a critical element in a life insurance policy, as it directly relates to the purpose of the insurance coverage—to ensure that the financial needs of the beneficiaries are met in the event of the life insured's death.