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At the same time, there is a bit of commerce involved in this.The insurance companies insure a person in exchange for regular premiums.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.In many other cases, premiums do not come under the ambit of taxation laws.In the US and the UK, by and large, premiums paid for life insurance are not tax deductible.

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The other side You may be surprised to know that there have been cases in the past when life insurance policies were misused.Insurance certainly eases the pressure on a common person who depends on regular earnings to support his or her family.The insurer has the right to deny selling a policy to an insurance seeker on various grounds.Despite this, a large number of people on this planet lead an uninsured life. To receive the death proceeds from the insurance company, the beneficiaries need to produce a death certificate of the insured person and proof of their own identity.The insurance company may demand more documents to ascertain the identity of the beneficiary or the cause of death of the insured.

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