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At the same time, there is a bit of commerce involved in this.

The insurance companies insure a person in exchange for regular premiums.

The other type of policy is bought from an investment perspective.

These can be called by different names like Universal, Permanent or Whole Life insurance.

The objective of this limitation is to prevent misuse of the policy and give insurance cover only to the deserving parties.

Types of insurance policies Though there are many types of life insurance policies available on the market, most of them can be broadly classified into two categories.

However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.However, if you go country-wise, the system would be simple to understand.In Australia, premiums paid through superannuation fund are taxable.He or she knows that his family or dependents won’t have to bear any hardships even if he dies.In most cases, the dependents include the spouse, children, and parents.

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