Well if you think your broker hid something from you….well you are partially hide! Also when your broker did not tell you that dealing in derivatives will lead to a quick death…well that is also partially true!
The problem is Death Derivatives are something new – and both the above statements are not true for death derivatives!
Thanks to improved health services and general good health, people are living longer. Much longer than what their financial planners told them to provide for. Now each passing year puts a big burden on the pension providers – sometimes as high as 4% p.a. So the insurance companies need some self funding products that will take care of this problem.
So the usual big names (yes you guessed right! J P Morgan, Goldman Sachs, etc. – the same guys who took us to the cleaners in 2008) have set up Death Derivatives.
Read here for greater details on how Death derivatives work…it is interesting and amusing!
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