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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.

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.

The insurance companies insure a person in exchange for regular premiums.

However, if you go country-wise, the system would be simple to understand.

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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.

The insurance policy is a legal contract between the insurer and the insured.

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