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

Insurance certainly eases the pressure on a common person who depends on regular earnings to support his or her family.

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.

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.

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

He or she knows that his family or dependents won’t have to bear any hardships even if he dies.

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These can be called by different names like Universal, Permanent or Whole Life insurance.

Term Insurance Term insurance is a kind of temporary insurance that would provide a death benefit for a certain period of time. Term insurance is not as costly as permanent insurance.

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