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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.For example, if you buy a policy for yourself, you are both the owner and the insured.However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.However, a person may make anybody the beneficiary of the policy.

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Such policies are known as term insurance policies.At the same time, there is a bit of commerce involved in this.The insurance companies insure a person in exchange for regular premiums.However, having a life insurance policy does not mean that you will get life cover for all kinds of deaths.Policy owner and the insured person Do keep in mind that the insured and the policy owner can be the same person or two different persons depending on the situation.

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