Whole life insurance is like a plan which is priced by some actuarial accountants.
It is true that life expectancy is increasing over time so if you buy the policy at young age, it becomes more loger.
thus, whenever you come across some insurance, there are some other terms like vehicle insurance, realestate insurance and so on.
It means there are someone who can take care of risk you would face some future.
Your future is not predictable and anything can happen in your life.
Then, how can insurance companies calculate this algorithm?
They have Actuaries who has exprets in math.
Every Insurance policy is analyzed by them with company expenses.
They are talking with tons of insured. So there can be someone who pay premium each year and very few people die after they pay it.
They can make money with a system that set the rate a little higher than tey would cover future.
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