- What is the name for the risk associated with people living longer than expected lives? 2. Longer lives can be a source of risk for both individuals as well as insurance companies. Agree or disagree? Elaborate your choice.
- Longevity risk 2. Agree - it is a problem for the individual as they may run out of money when their retirement portfolio dries up. It is a problem for the insurance firm as the length of their payment stream increases, reducing the profit on the annuity contract.
- Longevity risk 2. It’s a risk for individuals as they can outlive the value of their portfolio. For an insurance company, it depends on what their product mix is.
- longevity 2. agree for individ disagree if term life agree if annuity
1 longevity 2 I am interested to know. There is a much larger array of annuity products in insurance companies portfolios, however the percentage of term insurance has increased dramatically which causes less renewals in later stages of life. Net annuity trumps higher term, bad for insurance companies?