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For example, if you buy a policy for yourself, you are both the owner and the insured.However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.Insurance certainly eases the pressure on a common person who depends on regular earnings to support his or her family.

Universal / Permanent / Whole Life insurance These types of insurance policies are mostly bought by those who see insurance as a means of investment.However, having a life insurance policy does not mean that you will get life cover for all kinds of deaths.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.However, a person may make anybody the beneficiary of the policy.The insurance policy is a legal contract between the insurer and the insured.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.In many other cases, premiums do not come under the ambit of taxation laws.In the US and the UK, by and large, premiums paid for life insurance are not tax deductible.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.

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