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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, if you go country-wise, the system would be simple to understand.In Australia, premiums paid through superannuation fund are taxable.Life insurance is about providing protection to the dependents.

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In the US and the UK, by and large, premiums paid for life insurance are not tax deductible.The objective of this limitation is to prevent misuse of the policy and give insurance cover only to the deserving parties.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.However, a person may make anybody the beneficiary of the policy.The insurance policy is a legal contract between the insurer and the insured.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.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.

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