Investing for Beginners , investing

An insurance company may provide insurance services of two different directions: life insurance and non-life insurance. Non-life insurance is not very closely related (if to mention own insurance company’s investments) to investing and such companies provide vehicles, real estate and other property or health related insurance policies.  

Life insurance services provided by insurance companies are definitely investment services. Read about life insurance.

The business model of insurance company may seem strange for those who are unfamiliar with insurance business: the actuaries of insurance company are trying to make calculations in the way that payments for the insurance services would be equal to the insurance benefits that should be paid out for victims. So how insurance company would make a profit? The profit comes as interests that are received from money held in the company’s investment account till insurance benefits have to be paid. Insurance companies usually have huge capital and are investing their funds in bonds or other safe investments.