What is a primary responsibility of a policyholder in a life insurance contract?

A primary responsibility of a policyholder in a life insurance contract is to ensure that all premiums are paid on time. Timely payment of premiums is crucial because it keeps the policy active and in force. If premiums are not paid, the policy may lapse, meaning that the insurance coverage would end, and the policyholder would no longer be protected under the terms of the contract. This responsibility underscores the mutual agreement between the insurer and the insured, where the insurer agrees to provide coverage in exchange for the policyholder meeting their obligations, primarily financial.

The other options do not accurately reflect standard responsibilities of a policyholder. Selling a policy to another individual, while permissible under certain conditions, is not a fundamental duty of ownership. Making claims often requires documentation to support the claim, ensuring the insurer can appropriately assess the situation. Finally, initiating policy changes may not be solely the responsibility of the policyholder, as such changes often require consent from the insurer and may involve specific processes.