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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.
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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.
This way, they help the dependents live a normal life despite the demise of the concerning person.
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.
Life insurance is about providing protection to the dependents.
At the same time, it also provides peace of mind to the living person.
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