In the US and the UK, by and large, premiums paid for life insurance are not tax deductible.
Governments around the world encourage people to go for insurance.
The insurer has the right to deny selling a policy to an insurance seeker on various grounds.
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 Australia, premiums paid through superannuation fund are taxable.
In many other cases, premiums do not come under the ambit of taxation laws.
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.
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.
However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.