Life insurance is usually their bet you won’t die early, versus your bet you will. it times out and pays nothing if you’re still alive at some agreed age. They don’t always have to pay up eventually—or there would be no business model. They give you a policy worth a shade less than their expected payout, in the probabilistic sense, with the difference being the margin.
Life insurance is usually their bet you won’t die early, versus your bet you will. it times out and pays nothing if you’re still alive at some agreed age. They don’t always have to pay up eventually—or there would be no business model. They give you a policy worth a shade less than their expected payout, in the probabilistic sense, with the difference being the margin.