I was going through life insurance policies and noticed that even if I lived to be 100+ the amount of money I would pay into a life insurance policy would still be lower than the insurance pay out. I imagine many people die much sooner and get paid out even more than what they contributed. How do life insurance companies still profit off these policies when everyone will eventually die and cash out? It’s not like car insurance where you can go without an accident.
In: Economics
Other have already given the main details, but remember not everyone buys life insurance, and some peoples policy’s expire before they die, and because they are much older (and be honest, closer to death) the premiums are much higher and for some unaffordable, so they do not renew.
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