With Insurance companies, many of us are still unaware of the process of insurance companies and still don’t know how these companies pay such huge amount to the insured person or his family. There are many questions that are still asked by most of the people such as, How insurance companies earn? How Insurance companies create profit? Why and how insurance companies pay such huge amount on maturity of insurance plans?
Well at low, its none of our business to put our brain in these questions to think as we just care about the maturity amount of our insurance plan. But it is important for us to get to know the answer to these questions though it will not help us in increasing the value of our plan it is important at the general note. Insurance company’s business is very simple to understand.
Every insurance company is capable of paying a huge maturity amount because they earn four to five times of our premium amount. These companies use your money deposited in form of premium, investing in various stocks, shares and government projects for various time periods. The responsibility of segmenting the amount of investment and time period is on financial analyst of the company.
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