Rapper Kills Mom for Insurance Money, Flaunts Money on Social Media

Stupid, somewhat unrelated question: where is the profit in life insurance? If you can buy $250,000 worth of coverage for under $20 a month the insurance company would never make anything close to a profit.

 

Insurance companies pool their reserve money to invest in stocks, bonds and real estate. Huge shopping centers, apartment complexes and commercial real estate generating 15 to 25% IRR are often re-financed after construction by ins companies.

Their money making them money is why it's a profitable model. They're really all just banks.


Per the story--wow.

 

There's tons of people that outlive their term life insurance coverage. It's easy money for Life companies.

 

What he said. I pay $40 a month for $1mil but I got it when I was in my 30s and it's only a 20 year term. So once I hit my 50s you know that premium will jump up big time. If I don't renew they got $10k from me for those 20 years.

 

Sadly, this type of stuff happens a lot with insurance. I guess most of those situations don't have a rapper out there flaunting the insurance money

 

So he killed his mom so he could throw money to strangers.


Very smart.

 

It is really simple math. You can't look at each individual person you have to look at it as a pool. Suppose in a year you have 1000 people who pay 20 bucks a month. That is 240000 dollars a year you are collecting. Suppose you agree to pay 20,000 if they die. Suppose 1% of them will actually collect. So you end up paying 200000 out and make 40000 profit. You have actuarials or computers that crunch all the data and figure out what premium to charge people.

 

how bad do you have to raise a kid to have him do such a thing?

 

He's giving back to the community bro

 

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that's a got-durn shame. effing bebe's kids.

lol @ jerry's final thought at the end of the vid.