Is it as simple as person x gives money to some company to be spent a certain way after person x dies? How is that any different from a will? etc..
In: 0
Insurance is just protection in case something bad happens. I don’t want to get into a car accident and the insurance company doesn’t want me to get into a car accident either. I pay the insurance company for their coverage, and if I dont get into a car accident, they get to keep that money. If I do get into a car accident, then they pay me money so I can repair or replace my car. Life insurance is the same concept, except they pay out when I die. As long as I am still alive, I am paying more money to the insurance company until I eventually do die, but I still pay out the same amount. If you do something to intentionally trigger the insurance payout, then that’s insurance fraud, and thats a crime.
Latest Answers