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.

RELATED TERMS
  1. Assignable Contract

    A futures contract with a provision permitting the contract holder ...
  2. Traditional Whole Life Policy

    A type of life insurance contract that provides for insurance ...
  3. Wild Card Play

    Having the right to deliver on a futures contract at the last ...
  4. Delivery Date

    1. The final date by which the underlying commodity for a futures ...
  5. Exercise

    To put into effect the right specified in a contract. In options ...
  6. Free Look Period

    A period where a new insurance policy owner is able to terminate ...
Related Articles
  1. Investing

    What's The Difference Between Options And Futures?

    An option gives the buyer the right, but not the obligation, to buy or sell a certain asset at a set price during the life of the contract. A futures contract gives the buyer the obligation to ...
  2. Financial Advisor

    Divorce and Annuities: What Clients Need to Know

    Divorce can be the most financially devastating event in a person’s life. Here’s what your clients need to know about handling annuities in a divorce case.
  3. Investing

    What is a Forward Contract?

    A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.
  4. Insurance

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.
  5. Trading

    Stock Futures vs Stock Options

    A full analysis of when is it better to trade stock futures vs when is it better to trade options on a particular stock. A quick overview of how each of them works and why would a trader, investor, ...
  6. Financial Advisor

    Living And Death Benefit Riders: How Do They Work?

    Find out how these different riders work, and which type is right for you.
  7. Investing

    Introduction To Currency Futures

    The forex market is not the only way for investors and traders to participate in foreign exchange.
RELATED FAQS
  1. How can a futures trader exit a position prior to expiration?

    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 the difference between options and futures?

    An option gives the buyer the right, but not the obligation to buy or sell a certain asset at a specific price at any time ... Read Answer >>
  3. What is the difference between forward and futures contracts?

    While both forward and futures contracts allow people to buy or sell a specific asset at a specific time at a given price, ... Read Answer >>
  4. How do the investment risks differ between options and futures?

    Learn what differences exist between futures and options contracts and how each can be used to hedge against investment risk ... Read Answer >>
Hot Definitions
  1. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  2. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  3. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  4. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  5. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  6. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
Trading Center