7.56 LIFE INSURANCE, II It would be quite risky for you to insure the life of a 21-year-old friend under the terms of the previous exercise. There is a high probability that your friend would live and you would gain in $1250 in premiums. But if he were to die, you would lose almost $100,000. Explain carefully why selling insurance is not risky for an insurance company that insures many thousands of 21-year-old men.