A policyholder is an individual or entity that owns an insurance policy. This person or organization pays premiums to an insurance company in exchange for coverage against specific risks, such as accidents, health issues, or property damage. The policyholder is responsible for understanding the terms and conditions of their policy, including coverage limits and exclusions. In the event of a claim, the policyholder can request compensation or benefits from the insurance company, provided the claim falls within the policy's coverage. The relationship between the policyholder and the insurance company is governed by the terms outlined in the policy document, which serves as a legal contract.