futuredreamer
New member
@famof6 Term isn’t actually almost pure profit. It is one of the products that have the lowest pay out rate. Meaning the company is keeping all those premiums because people either let the policy lapse, or outlive the policies. Term is absolutely a cash cow for insurance companies.
Time horizon on insurance is flipped. The shorter time horizon = more profitability because it’s less risk the carrier pays out. Long time horizon = more risk the carrier pays out.
Time horizon on insurance is flipped. The shorter time horizon = more profitability because it’s less risk the carrier pays out. Long time horizon = more risk the carrier pays out.