affinein

Affine Ininsurance is a term coined by John Copeland in his book "Ten Gold Bars". It refers to an insurance product designed to protect individuals from the financial risk of living longer than expected, thereby depleting their savings. This type of insurance policy is also known as a longevity insurance or unit-priced insurance.

In an Affine Ininsurance contract, the policyholder pays a premium that remains constant over time. The premium is adjusted to reflect changes in the policyholder's lifespan. If the policyholder lives longer than expected, the premium decreases, and the policyholder pays the company less. Conversely, if the policyholder lives shorter than expected, the premium increases, and the policyholder pays more.

The concept of Affine Ininsurance is based on actuarial science, which studies the statistical patterns in human mortality rates. By using a flexible pricing formula, the insurance company can optimize its premiums to reflect the policyholder's changing lifespan.

Affine Ininsurance policies are generally available to individuals who have exhausted other retirement savings options or are concerned about outliving their assets. These policies are designed to provide a guaranteed income stream, which can help policyholders cover their living expenses during a prolonged retirement.

The benefits of Affine Ininsurance include a predictable premium payment structure, protection from longevity risk, and a chance to maximize one's savings potential. However, potential drawbacks include the use of specific actuarial tables and assumptions on which the affordability is calculated, which may not reflect individual circumstances.

Affine Ininsurance is a specialized insurance product that is often associated with the innovative concept of fixed cash annuity.