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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.In the US and the UK, by and large, premiums paid for life insurance are not tax deductible.

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In Australia, premiums paid through superannuation fund are taxable.

In many other cases, premiums do not come under the ambit of taxation laws.

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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.

These include riots, commotion, suicide and many other similar things.

The objective of this limitation is to prevent misuse of the policy and give insurance cover only to the deserving parties.

However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.

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