How Does A Life Insurance Company Make Money?

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    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Life insurance companies make money by investing in various assets, predominately investment grade government bonds. They target a profit margin and depending upon the product line, credit the policy accordingly. For consumers with permanent life insurance policies, the companies 5 year net yield on investment is a critical component to review before purchasing a policy.
    Answered on August 4, 2013
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