I haven’t done much research but from what I’ve read, the life insurance monthly payments are under $100 but will pay out huge numbers.
The example I found –
“Insurance Barometer Report said a $250,000 term life insurance policy for a healthy 30-year old would cost $500 a year or more.”
That’s like $25k total payments if they reach 80 years.
Am I missing something? How can companies afford this? Why isn’t absolutely everyone insured?
In: 6
Insurance is a pyramid scheme and a gamble. Everybody pays in and then the insurance company banks on few enough people getting payouts for claims that they come out ahead. Given your example a healthy 30 year old isn’t likely to cash in on their life insurance policy so their payments are just profit for the insurance company
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