[extropy-chat] Article: Who would not seize the chance to live to be 150?

[BillK]

On 2/11/06, Robin Hanson wrote:
> At 12:25 PM 2/9/2006, Keith M. Elis wrote:
> >What evidence is there that the average human lifespan in the
> >developed world is about to suddenly increase at a rate faster than
> >we are experiencing currently?
> >I ask because if I really believed this were true, I would form a
> >company to offer permanent cash value life insurance to healthy
> >applicants at steep discounts to the prevailing market premiums
> >which are based on soon-to-be-proved-incorrect actuarial tables. ...
>
> The fact that no life insurance companies or speculators seem to be
> taking this strategy, even though there are many who could, strongly
> suggests that none of them think this scenario very likely.  Which to
> me suggests that it is in fact not very likely.
>

Life insurance actuaries were slow to react to the increasing average
life span. One good way to beat the system around ten years ago was to
buy an annuity. An annuity is a policy whereby you use capital to buy
a lifetime monthly income (which can have increases built in to combat
inflation). This removes excess capital (which we all have lots of, of
course) from your estate and out of the reach of inheritance / death
taxes.

Because the actuarial calculations used to be based on lower average
life spans, people buying then got a very good deal. Nowadays the
income stream generated is much less than it used to be. Another
disadvantage to be looking for a pension in future.

BillK