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Insurance Explained | How Insurance Companies Make Money


Welcome back Viral Blossomers, today we are going to talk about how do insurance companies make money.  Well, they do it in two ways.  One, they are gambling that something will not happen, and you're paying the premiums in the hope that something doesn't happen also.  But those premiums that the insurance receives are invested in the stock market, their investments in gold, their investments in other businesses. 
They might even be invested in different insurance companies.  You must also consider that the insurance company is there to make money, and since all of the premiums are designed by actuaries and the odds that something will happen.  Many times those odds don't repeat.  Like the house in Las Vegas.  Their gambling on the odds that you're not going to win, and we know that the house usually wins in Las Vegas.  So how do insurance companies make money? They make money in two ways.  By taking your premiums and investing them and getting returns on that investment.  By also by taking the premiums and gambling that something will not happen. Helping people every day. 
Insurance Explained | How Insurance Companies Make Money Insurance Explained | How Insurance Companies Make Money Reviewed by ViralBlossom on April 12, 2020 Rating: 5

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