Policyowner is the individual or entity that holds ownership rights in a life insurance or annuity contract, including the ability to change beneficiaries, access cash values, assign the policy, and decide whether to keep or surrender coverage. The policyowner may or may not be the insured. Ownership choice has major implications for control, taxation, and estate planning, especially when policies are owned by trusts, businesses, or third parties rather than the insured personally. Clear documentation of ownership helps avoid disputes and unintended tax consequences.

Advisors discuss who should be the policyowner when designing personal, business, or trust-owned strategies, weighing control, creditor exposure, and estate-tax issues. They submit applications and change forms that correctly identify owners and authorized signers, and they periodically review ownership when family or business circumstances change. Policy summaries and illustrations are typically addressed to the policyowner. Understanding policyowner status helps advisors coordinate with attorneys and CPAs so ownership structures support, rather than undermine, the clientTMs overall planning goals.