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Always wondered why perpetual insurance isn’t more popular. It has an interesting model we’re you make a single payment at the start of the policy and claims a
by pmorici 5y ago
Always wondered why perpetual insurance isn’t more popular. It has an interesting model we’re you make a single payment at the start of the policy and claims are paid out from the proceeds of the investment income. You also get your principal back if you ever chancel your policy. Only found out about this after hearing an ad for The Baltimore Equitable Insurance Company a few years back.
https://en.m.wikipedia.org/wiki/Perpetual_insurance https://en.m.wikipedia.org/wiki/Perpetual_insurance
- opportune 5y agoThat sounds like self-insuring but with zero control over the investments?
- pmorici 5y agoUnlike self insurance they are still pooling risk among all their policy holders.
- sygma 5y ago> The insurer must earn enough income from investing the deposits to cover losses and operating expenses for the model to be economically viable The above is a quote from the Wikipedia article. I suspect that with interest rates at an all time low, the environment is not exactly ripe for this kind of insurance model.