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Insurance can be a very confusing topic for most people. We have already discussed various types of insurance in our previous topics and the benefits people gain in each kind of insurance policies. This article, on the other hand, will discuss how insurance companies make money as it is a commonly asked question and most people fail to find an appropriate answer to this question.
While the discussion can be as complex as we want it to be, the simple answer to this mysterious question can be very straightforward. Basically, the income source of these companies can be divided into two categories. Both these categories are discussed below.

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