how does life insurance make sense, like how does $40/month for 10 years get you 500,000 life insurance?

Question

I’m probably just stupid 😭

In: 4901

Answer 1

Hi there. I sell and manage life insurance policies.
Term insurance like the majority of people have almost NEVER pay out so it’s pretty low risk to the company.
They mostly make money investing your premiums into other investments, and if millions and millions pay $40 a month, that’s a lot of fuck around money