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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.

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.

However, having a life insurance policy does not mean that you will get life cover for all kinds of deaths.

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.

Despite this, a large number of people on this planet lead an uninsured life. To receive the death proceeds from the insurance company, the beneficiaries need to produce a death certificate of the insured person and proof of their own identity.

The insurance company may demand more documents to ascertain the identity of the beneficiary or the cause of death of the insured.

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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