At the same time, there is a bit of commerce involved in this.The insurance companies insure a person in exchange for regular premiums.Life insurance is about providing protection to the dependents.At the same time, it also provides peace of mind to the living person.However, a person may make anybody the beneficiary of the policy.The insurance policy is a legal contract between the insurer and the insured.For example, if you buy a policy for yourself, you are both the owner and the insured.However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.
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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.
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.