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The other type of policy is bought from an investment perspective.These can be called by different names like Universal, Permanent or Whole Life insurance.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.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.He or she knows that his family or dependents won’t have to bear any hardships even if he dies.In most cases, the dependents include the spouse, children, and parents.

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.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.Governments around the world encourage people to go for insurance.Many countries give incentives in different forms to encourage this practice.

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