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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.
Since we live in a society, the first thought that comes to our mind is how to protect those who are dependent on us.
One is for the sole purpose of protection so that the dependents of a person can be supported after the demise of the insured person.
Such policies are known as term insurance policies.
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.