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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.
Term Insurance Term insurance is a kind of temporary insurance that would provide a death benefit for a certain period of time. Term insurance is not as costly as permanent insurance.
Universal / Permanent / Whole Life insurance These types of insurance policies are mostly bought by those who see insurance as a means of investment.
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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This way, they help the dependents live a normal life despite the demise of the concerning person.In simple words, the person who pays the premiums is the policy owner while the person who is covered by the policy is the insured person. Most of the life insurance policies do not cover deaths due to man-made events.These include riots, commotion, suicide and many other similar things.At the same time, there is a bit of commerce involved in this.The insurance companies insure a person in exchange for regular premiums.