Insurance is a legal and financial contract that involves two parties. One party proposes to cover for you or your property and the other purchases it. The party which gives you insurance is known as the ‘insurer’, the other is the policyholder.
A policyholder is a person who has purchased the insurance policy. Thus a policyholder is the owner of the policy and is the name that goes into the records of the company. Most often, the policyholder is the one who is insured in the policy as well. In types such as home insurance or vehicle insurance, these are the same.
But note that it is not necessary for a policyholder and the person insured to be the same. Both the insured and policyholder are related but can be different as well.
For example, if you have purchased a life insurance policy for your wife, then your wife will be the one insured but you will remain the policyholder.
Or if you have a business and you have taken insurance for your business partner.
In both these cases, both the insured and policyholder are related but not the same person.