Talk of The Villages Florida - View Single Post - Longevity Insurance
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Old 04-22-2011, 12:41 PM
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rjm1cc rjm1cc is offline
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"Guess what the Insurance Company is betting on.
From the Create a Paycheck article;
Average life expectancy for a 65-year-old male is 84.2 years."

Average means 1/2. That would say the insurance company is counting on 1/2 of its policy holders dyeing and to use that money to pay the other half that lived.
This means if you think your life expectancy is less than 84.2 years then don't buy.

If I was buying the policy I would be planning on being part of the 1/2 that won the bet. Again the policy is designed to share the risk of running out of money and like any other business the life insurance company keeps part of the dollars you pay into it to pay their employees and stockholders.