The person who owns the life insurance policy (the policyholder) is named in the ownership clause. The policyholder is usually the same person who is insured under the policy, but this does not have to be the case.

An insurance policy will also specify the rules for assigning (transferring) the policy to a new owner. Usually, the insurance company is not bound by the assignment until it receives a written notice of assignment. The assignment is subject to any outstanding policy loans. If used wisely, assignments of life insurance policies can be one of the best ways to make tax-free transfers of wealth to family members, and others.