Death-backed bonds

(redirected from Death-Backed Bond)

Death-backed bonds

Bonds backed by loans of a policyholder against a life insurance policy. The policyholder will repay the loans while alive or with the benefits from the insurance policy upon death.

Death-Backed Bonds

Bonds secured by a pool of life insurance policies. Coupons on death-backed bonds come from the profit the insurance company derives from each life insurance policy. Death-backed bonds carry little risk because every life insurance policyholder eventually dies.