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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.

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.

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.

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.

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