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
Life insurance is only during the term of the policy. Most common terms are time. Time of when you work for a company, time when you maintain payments. If you die not during the term you don’t get a cash out, even though you paid initially
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