Obviously i understand how insurance works, but how the hell does life insurance work considering everyone is going to die? I see so many companies offering what ludacris amounts of money for tiny weekly/monthly payments. How do the insurance companies actually make money?
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Following to find out also.
My understanding is there are two types a fix term and non fixed term (I don’t know the phrase) basically with a fix term you pay x amount for the term. If you pass away you are cover, if you don’t then you ‘loose’ what you have paid and have to take a new policy out.
The amount you ‘pay’ is based on the risk of you as a person. For example how active you are, healthy etc.
I do hope someone else adds more here as I only understand a little bit but in all honesty keep getting out off purchasing because it’s a minefield.
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