Most of us probably pay too much for insurance.
The idea here is pretty simple, according to an article written by Tara Siegel Bernard in Tuesday's New York Times:
Ms. Bernard goes through some numbers later in the article, based on a new policy offered by New York Life. I need to spend more time on the math, but on the surface the idea makes some sense.
I do have a couple of concerns, however. First, this is still a fairly new product, which means that the industry is still not clear on how to price longevity insurance. And, second, it is also possible than an individual might be be better off by simply taking the premiums that they would have paid the life insurer and invest in the market themselves.
Still, a worthwhile read.