How do life insurance companies make money? From the law of averages. On average, the life insurance company collects more in life insurance premiums than it will ever have to pay out in death benefits. That’s because with hundreds of thousands, sometimes millions of policyholders with life insurance policies, most pay more in premiums than their families will collect in death benefits.
The camp seeking passive income to increase your retirement savings with safe consistent returns? Or do you fall under the camp seeking to build wealth through a compounding passive income stream?
No matter which camp you fall under, no doubt you’ve considered both stocks and real estate as passive investment options and the reason you’ve sought out passive income opportunities is because you either don’t have the time or feel like you don’t possess the expertise to actively trade stocks or actively invest in real estate.