How life insurance companies make money

Some people worry that life insurance might not always come through for them. If life insurance pays out at the death of the policyholder, and if all policyholders eventually die, how can the insurance company make money? Do they do it by denying claims? The answer is no—there are other ways insurance companies make money while still paying benefits to the people who need them. Knowing how that works may help you feel more confident about getting a policy.

Generally speaking, you pay your life insurance premiums with after-tax dollars. So, you can't deduct life insurance premiums because it's considered a personal expense.

It can be easy to lose track of an insurance policy, but if you need to find your missing life insurance policy or help a loved one do the same, there are steps you can take. These steps also apply if your loved one recently passed away and you believe you are a beneficiary of their life insurance but aren’t sure where the policy is stored.

Life insurance isn’t just about preparing for the unexpected — it’s about helping care for the people who matter most to you. What sets whole life insurance apart is that the coverage is designed to last your entire lifetime, and it could build value over time. Here’s what to know about how it works and why whole life coverage might be a smart addition to your long-term financial plans.

When you lease a car, leasing companies usually require you to carry your own insurance. Knowing you have options can help you be ready for the unexpected with the right protection for your leased car.

Mechanical Repair Coverage helps protect drivers from unexpected vehicle repair costs. Learn how MRC is different than Liability Insurance and how it helps cover repairs made by a mechanic for things like engine, transmission, and electrical system failures.

If you are in a car accident that is your fault, liability insurance is designed to cover the losses of the other driver, up to a limit. Learn how to help reduce the financial risk a car accident could cause.

Home insurance premiums depend on a variety of factors related to you, your home and current economic conditions. Learn what impacts home insurance premiums.

If you smoke, you might assume life insurance is out of reach - but the truth is, you still have options. Whether you use tobacco, vape, or cannabis products, there are coverage types that may work for your situation and your budget. In this video, we’ll walk through what to consider when applying for life insurance as someone who smokes - from understanding coverage types to knowing when and how to apply. You’ll also learn why it’s important to be honest during the process and how quitting down the line could help reduce your rates.

You were prepared to take the next step to help protect your family with life insurance. Then you found out your application was rejected. Now what? There may be options for people who are declined for a life insurance policy. Don’t give up!

Is your employer’s life insurance program right for you and your family? Learn how basic life insurance through your employer works, how much they may provide, if it meets your needs and an option that can help.

Getting married changes your life. This is a time when many newlyweds begin planning their future together. That planning often includes life insurance - for 3 good reasons.

Whole life, or other insurance policies with a cash value, can be used as an investment vehicle, but what are the pros and cons? We'll show you.

Curious about annuities and how they fit into retirement planning? Let's break down the different types of annuities, their benefits, how they work and other considerations to keep in mind.

From job loss to car repairs, unexpected expenses can quickly throw a wrench in your budget. That’s where an emergency fund can help. Whether you’re just beginning to save or looking for ways to strengthen your safety net, you’ll find approachable tips to help you feel more prepared and confident for whatever comes next.

While you can’t control the cost of goods and services, there are a few things you can do to better understand what is happening and to weather this challenging time. Learn more.

What’s the difference between life insurance and accidental death & dismemberment insurance? While both options can help protect your family’s financial future, there are some key differences you should know. Watch this video to learn what makes AD&D and life insurance unique, and understand which options could be the right fit for you and your loved ones.

Are you wondering what Accidental Death and Dismemberment (AD&D) insurance is and how it could help protect you and your family’s financial future? Find out how this type of coverage is different than life insurance and could make a big difference if there’s a loss of income in certain accidental scenarios.

Most people know at least a little bit about what life insurance is, but what’s the big deal about Accidental Death and Dismemberment Insurance? What is it? Why is its name so long? Does anybody even have it?

Accidental Death & Dismemberment (AD&D) insurance is designed specifically to cover certain accidents. It provides a payout in the event of death or permanent physical injury due to a covered accident. AD&D insurance is very different from traditional life insurance. Depending on your needs, you may want both kinds of coverage.