GO
Loading...

Life Insurance and Death Probability: CNBC Explains

For life insurance companies, understanding how much to charge for term life policies is important to ensure, statistically, that profits and payouts can be made. To do this, the company must understand the likelihood that a policy holder would die while being insured. How is this breakeven point calculated? Salman Khan of the Khan Academy explains.

From this video you will understand:

  • How death probabilities factor into life insurance premiums
  • The way companies identify their breakeven points on life insurance

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Latest Special Reports

  • Alibaba Group headquarters in Hangzhou, China

    In-depth coverage on Alibaba's IPO, including roadshow coverage, expert analysis, and Alibaba's stock price.

  • With more than 1,600 ETFs now on the market, learn more about how advisors and investors are profiting from the ETF boom.

  • Unlock the keys to building a successful long-term financial plan: manage your money, grow your money, and protect it.

Central Banking Explained

Corporate Accounting Explained