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Longevity Insurance

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Longevity Insurance
An insurance policy that pays a benefit if the policyholder lives to a certain age. For example, in exchange for the premium, longevity insurance provides a lump sum to the policyholder, for example, if he/she lives to 90. Longevity insurance is comparable to life insurance; the chief difference is that the policyholder collects the benefit merely if he/she lives long enough. Longevity insurance protects against longevity risk.


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An annuity is a kind of insurance policy, called longevity insurance.
Longevity insurance and annuity products are emerging in mature markets like Japan and Australia, driven by demand for post-retirement pension protection.
 
 
 
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