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.

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RELATED FAQS
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    A futures contract is an agreement to buy or sell a commodity at a pre-determined price and quantity at a future date in ... Read Answer >>
  2. What is a wild-card play?

    A wild-card play is a term related to futures contracts. A future is a financial contract obligating a buyer to purchase, ... Read Answer >>
  3. What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Answer >>
  4. How do the investment risks differ between options and futures?

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