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There is an accumulation of money in these types of policies and there is a minimum sum assured to the beneficiary at the maturity of the policy. Prima facie, they are doing a good work by insuring people against any untoward incident.

This way, they help the dependents live a normal life despite the demise of the concerning person.

Further, the insurance premiums vary from person to person depending on his or her age, smoking habits, medical history, driving record, job profile and other things.

Taxation Taxation in the context of insurance is a complicated matter especially when you think of it from a global perspective.

For example, if you buy a policy for yourself, you are both the owner and the insured.

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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.However, a person may make anybody the beneficiary of the policy.The insurance policy is a legal contract between the insurer and the insured.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.

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