How Do Insurance Companies Make Money On Life Insurance?

How does an insurance company make money on a 30 year old paying $13 per month for a $100,000 term life insurance policy? At that price it would take 641 years for premium to equal the death benefit.

No worries – 99% of all term policies never pay out a claim. This is due to most people letting their policies lapse. 

Life settlement brokers is trying to change that.