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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.Universal / Permanent / Whole Life insurance These types of insurance policies are mostly bought by those who see insurance as a means of investment.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.The insurance policy is a legal contract between the insurer and the insured.

However, if you go country-wise, the system would be simple to understand.In most cases, the dependents include the spouse, children, and parents.However, a person may make anybody the beneficiary of the policy.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.

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