CreditSuisseverbal题库.docVIP

Human mortality, whilst consisting of unpredictable individual events, has a statistical regularity when averaged across a large group. This makes possible a whole host of products, of which the annuity is one. The price of an annuity paying a fixed regular income for life is based upon the statistical life expectancy of the purchaser at the time the annuity is to begin. The company selling the annuity will benefit from all those customers that die earlier than predicted, while customers are attracted by the prospect of guaranteed income for as long as they live. Annuities have the disadvantag