The most common, and in my opinion the most reliably profitable, scams are, strictly speaking, not illegal. For the purpose of explaining how scams work in this thread, I not defining a SCAM as mere fraud.
Something as simple as fraud as defined by our over legal system is the simplest and least complicated type of scam. The world is full of legal scams. Faith healers for example. Companies that hide fraudulent medical advice and overbilling behind the veil of religious protections like a certain science fiction cult we all know.
The best scams are the one where you can take absolutely everything you can get from a person and nobody can stop you or get their money back because you have successfully exploited the US legal code to deliver way less than you thought you were paying money to get.
Life insurance is one such rip off.
By design, you don’t profit from it in any way at all ever. You are dead. You are not buying peace of mind, you are buying a lie.
Even your family barely profits at all. They do everything they can to avoid paying out.
Here is how life insurance companies even scam the families of dead soldiers.
TL;dr version: They deposit the money received to pay for the insurance into a 5% interest corporate saving account and then keep most of the insurance. Instead of keeping a small surcharge, they take almost all of the profits from the soldier’s investment. They are turning a massive profit on dead soldiers through a contractual government awarded monopoly and deceiving everyone about the nature of the product they are selling.