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He or she knows that his family or dependents won’t have to bear any hardships even if he dies.
Such policies are known as term insurance policies.
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.
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.
This way, they help the dependents live a normal life despite the demise of the concerning person.At the same time, there is a bit of commerce involved in this.