Where Does Life Insurance Money Come From? 
By life insurance money , I assume that you mean the money the insurance company pays to your beneficiary ? It comes from your and everyone else 's premiums . Think about it . If one thousand young healthy 30-year olds buy a 30-year level term life insurance policy , all of them pay premiums for 30-years . But how many of them do you think will actually die during that 30-years ? One or two of them . Those are the only ones that will get anything back from the insurance company . The premiums from all 1,000 times 30-years will pay the death benefit for the one or two that die . 