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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.Such policies are known as term insurance policies.The other type of policy is bought from an investment perspective.
Insurance certainly eases the pressure on a common person who depends on regular earnings to support his or her family.
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.
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.