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Term Life insurance is the easiest to explain. They take in $400 per year in premiums for example. They only sell this policy to young healthy people at this price. IF you die while insured they will pay your beneficiary $250,000. If very many people died, this would never work.
The life insurance company has run the numbers and knows exactly how many people with that policy will die while insured. It's very very few. Most people will pay that premium for 20-years and never receive anything back.
The money a life insurance company collects in premiums minus what they pay in claims minus their operational costs = their profit.