Since we live in a society, the first thought that comes to our mind is how to protect those who are dependent on us.
Life insurance is about providing protection to the dependents.
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Death is the only thing that is certain in this world.
In most cases, the dependents include the spouse, children, and parents.
However, a person may make anybody the beneficiary of the policy.
However, if you buy a policy for your spouse, you are the policy owner while your spouse is the insured person.
In simple words, the person who pays the premiums is the policy owner while the person who is covered by the policy is the insured person. Most of the life insurance policies do not cover deaths due to man-made events.
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The insurance policy is a legal contract between the insurer and the insured.