The mute point is that although the term life is a low cost life insurance policy, it is financially as viable as any other policy is. There is no deception or false promises. Buy a term life insurance to cover your insurance need and live in peace.
The insurance carriers are here to do business and to earn a profit. Their business model can simply be put as - Profit = earned premium + investment income – incurred loss – underwriting expenses. Although many of us believe that the main income of a life insurance carrier comes from the amount they invest, that is not true. It mainly comes from the ‘earned premium’. Greater is the ‘earned premium’ and lesser is the ‘incurred loss’ higher will be the profit.