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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.

There is an accumulation of money in these types of policies and there is a minimum sum assured to the beneficiary at the maturity of the policy. Prima facie, they are doing a good work by insuring people against any untoward incident.

This way, they help the dependents live a normal life despite the demise of the concerning person.

In the US and the UK, by and large, premiums paid for life insurance are not tax deductible.

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.

Death is the only thing that is certain in this world.

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Since we live in a society, the first thought that comes to our mind is how to protect those who are dependent on us.

For example, if you buy a policy for yourself, you are both the owner and the insured.