Life Policy Payout

[geoff1057]

can an insurance company pay out less, than you pay in, for a life insurance policy

[Peter Pedant]

yeah unfortunately
it depends on the contract and there are as usual some pretty crip contracts out there.

they cant just decide to fail to pay out and return your premiums unless there is a reason ( like you lied)

and there are rules if you fail to pay premiums before they terminate.

a frenz funeral insurance pays out LESS the longer you live. yes really. this is the one where the fella on moneybox live said - "I was so amazed I rang and asked if that were wrong - it wasnt!"

if you are a historian - the insurance industry is the earliest regulated industry by legislation . The insurance companies had good ideas like "I know! we wont pay out!"

first regulatory act 1702 I think - yeah that early

[Peter Pedant]

oh !
short answer is yes it is called term insurance.

oops ! if you pay for term insurance to 45 and then live until you are 46 you get nothing.

[fiction-factory]

Is it a policy that pays out on your death? I suppose you'll never know how much they actually paid.
If it's for someone else, they will pay the set amount. If the person lived only a few years after taking the policy they will pay out more than was paid in. If you survive for 50 years and pay in throughout the period the payout will probably less than was paid in. Winners and losers.