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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.

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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.

The insurer may get the matter investigated if it finds any kind of discrepancy in the claim or the cause of death of the insured person.

The other side You may be surprised to know that there have been cases in the past when life insurance policies were misused.

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.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.These include riots, commotion, suicide and many other similar things.At the same time, there is a bit of commerce involved in this.The insurance companies insure a person in exchange for regular premiums.Life insurance is about providing protection to the dependents.

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