How Can Life Insurance Companies Make Money? 
This is a very simple overview of a very complicated business . Once you have a basic knowledge of the building blocks of life insurance you will be able to begin to understand how a well run company can be profitable . A life insurance policy has three main components investment earnings , mortality and expenses . How well a company does relative to the projections it bases premiums on these determines how profitable it is . The more conservative the projections the more potential for profit and of course the higher the premium . If you would like a more detailed answer , you may contact me . 