Is like a special savings account?
In: Economics
all insurance is a bet. “I bet you X wont happen, if it does, you will pay me Y. To make it worth your while, I will pay you Z indefinitly”
for life insurance you bet you wont die and pay Z every year you are alive. When you do die, your life insurance pays out Y. Obviously it cant pay out while you are alive, because payout is conditional on you being dead.
its almost exactly the opoosite of a savings account. its a guarenteed amount of money that doesnt change no matter how much you pay into it, but is always full, but you cant access it
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