Considering that people who take life insurance would inevitably die and so the companies have to pay out the premiums, why do insurance companies still offer these options?
[Used the economics flair as I didn’t know which one to use.]
In: Economics
Insurance companies profit because they collect premiums from a large number of people and only pay out when claims are made. They use statistical models to ensure they collect more in premiums than they pay out in claims.
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