Contract Holder


DEFINITION of 'Contract Holder'

An individual or organization who owns the rights to a debt or other obligation. A contract holder is owed the benefits outlined in the contacts at a future date under the provisions of the contract. If the provisions or terms of the contract agreement are broken by the contract holder, he or she may have to forfeit some or all of the benefits.

BREAKING DOWN 'Contract Holder'

A contract holder of a segregated fund, such as a pool of investments tied together in an life insurance policy, pays premiums to an insurance company so that the contract holder will receive an agreed upon sum in the case of loss. If the life insurance policy holder breaks the terms set forth in the policy, he or she may not be entitled to money despite having paid premiums.

  1. Amendment

    1. A change to one of the terms of a contract. Any type of contract ...
  2. Addendum

    An attachment to an a document such as an insurance policy that ...
  3. Adhesion Contract

    A contract in which one party has substantially more power than ...
  4. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  5. Life Insurance

    A protection against the loss of income that would result if ...
  6. Rescission

    The right of an individual involved in a contract to return to ...
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  1. How do segregated funds differ from mutual funds?

    Mutual funds are investment vehicles that many investors have embraced as a simple and relatively inexpensive method for ... Read Full Answer >>
  2. Do beneficiaries pay taxes on life insurance?

    Generally speaking, when the beneficiary of a life insurance policy receives the death benefit, this money is not counted ... Read Full Answer >>
  3. Can I borrow from my annuity to put a down payment on a house?

    You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. ... Read Full Answer >>
  4. What are the biggest disadvantages of annuities?

    Annuities can sound enticing when pitched by a salesperson who, not coincidentally, makes huge commissions selling them. ... Read Full Answer >>
  5. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
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    A longevity annuity may be right for an individual if, based on his current health and a family history of longevity, he ... Read Full Answer >>

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