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.
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.
The other type of policy is bought from an investment perspective.
Since we live in a society, the first thought that comes to our mind is how to protect those who are dependent on us.
Life insurance is about providing protection to the dependents.
However, if you go country-wise, the system would be simple to understand.
The insurance companies insure a person in exchange for regular premiums.
Insurance certainly eases the pressure on a common person who depends on regular earnings to support his or her family.
This way, they help the dependents live a normal life despite the demise of the concerning person.
At the same time, there is a bit of commerce involved in this.
In most cases, the dependents include the spouse, children, and parents.