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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.Life insurance is about providing protection to the dependents.At the same time, it also provides peace of mind to the living person.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.

The insurer has the right to deny selling a policy to an insurance seeker on various grounds.Term Insurance Term insurance is a kind of temporary insurance that would provide a death benefit for a certain period of time. Term insurance is not as costly as permanent insurance.Universal / Permanent / Whole Life insurance These types of insurance policies are mostly bought by those who see insurance as a means of investment.However, if you go country-wise, the system would be simple to understand.In Australia, premiums paid through superannuation fund are taxable.

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