Where Do Insurance Companies Invest. Since life insurance companies know the risk of losing money, they invest premiums in stocks, bonds, and accounts that pay them interest. When an insurance company receives its monthly premiums, the insurance company takes those monies and invests them in the financial markets, to increase their revenues.
When you invest in an insurance company, you’ll want to take a look at what type of investments they have and the risk involved. Their enterprise does not create money in. Anyone with a healthcare policy pays a monthly insurance premium.