Term insurance is more profitable for the life insurance companies and agents than cash-value insurance.

Question

Quizplus · Accepted Answer

Cash-value insurance typically has higher premiums and a portion of those premiums go towards building up cash value, which can be more costly for the insurance company to manage. Term insurance, on the other hand, has lower premiums and does not build up cash value, making it more profitable for insurance companies and agents.

Term Insurance Is More Profitable for the Life Insurance Companies