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Universal / Permanent / Whole Life insurance These types of insurance policies are mostly bought by those who see insurance as a means of investment.

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.

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.

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.

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

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

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

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.

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Policy owner and the insured person Do keep in mind that the insured and the policy owner can be the same person or two different persons depending on the situation.

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

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