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The insurance policy is a legal contract between the insurer and the insured.
However, having a life insurance policy does not mean that you will get life cover for all kinds of deaths.
In most cases, the dependents include the spouse, children, and parents.
However, a person may make anybody the beneficiary of the policy.
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.
The objective of this limitation is to prevent misuse of the policy and give insurance cover only to the deserving parties.
At the same time, it also provides peace of mind to the living person.
He or she knows that his family or dependents won’t have to bear any hardships even if he dies.
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