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

  • Advisors say it's time to get serious about year-end financial plans, like taxes and portfolio re-balancing.

  • With the world becoming more interconnected, it’s getting harder to anticipate and manage global risks. We take a look at some of the biggest risks and ways to mitigate them.

  • From family-run companies to public companies with family ownership, we tackle challenges and rewards facing family businesses.

Central Banking Explained

Corporate Accounting Explained