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everyone is going to die sometime but then how do life insurance companies make money life insurance is essentially a contract between the insured and the insurance company that pays out if the policyholder the insured dies the life insurance money generally goes to a family member or beneficiary but how can this be profitable for the insurance company everyone dies after all well it all has to do with how the contracts are set up theres generally two types of life insurance term life and permanent life term life covers the insured for a set amount of time generally somewhere in the range of 15 to 30 year periods if you die in that period the policy pays out if you dont then you get nothing as youre no longer covered in this scenario life insurance makes a little bit more sense as it removes the possibility of every policyholder eventually dying since its only a given period of time insurance companies can run complicated and sort of morbid models to determine how many people will
