How Does Life Insurance Make Profit?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA life insurance company is like a bank in that it makes a profit from the services that it provides. State regulators assure that companies admitted in their states are not making “inordinate” profits. Much like a bank they bring together people with similar needs. They provide services to determine how to share the risk that affects all of them, death, collision, fire or something else.Answered on July 1, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! Insurance companies make profits much like banks do. They make money off of the products that they sell - all of the policies or annuities will have fees attached to them, that they can profit from. They also make money off the investments that they make while holding your money. They invest in things, just like we do. They can also make money by selling off or buying corporate assets, or divisions, much like corporations do. I hope that helps, thanks for asking!Answered on July 2, 2014flag this answer
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