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Death is the only thing that is certain in this world.
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.
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.
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.
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.