Thursday, May 14, 2009

The game of life

"Annuity contracts are the inverse of life insurance;"

So here's what the insurance companies should do: create a combination life insurance and annuity contract. If they live longer than expected, you lost money on the annuity but gain it on the life insurance. If they pop off early, you lose on the life insurance and gain on the annuity. Come on, insurance companies, hold both the stock and the CDO!

1 Comments:

Blogger Noumenon said...

I really wouldn't be surprised if they already do, since they will still make money on the "float" (time between paying premiums and cashing in) and fees from stupid people.

12:08 PM  

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