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
There are a number of ways you can void your policy, whereupon everything you paid is lost and you collect nothing, E.G., you are a smoker and told them you are not; when you become sick or die, and they find out you smoked, even if you had quit for twenty years, it makes no difference and your policy would pay nothing.
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