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RomeoStevens comments on Open thread, September 9-15, 2013 - Less Wrong
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Random thought on how to profit twice by getting paid to live longer.
If you are over-weight, have a high stress job, smoke, and live a generally bad lifestyle, you should buy a Life Annuity, since they will reward you for living longer than expected, where as typical life insurance "rewards you" only after you die; both are based on mortality tables. After you purchase a Life Annuity go and defy the actuaries – eat less meat and more vegetables, lose weight, quit your high-stress job, give up smoking and start exercising. Your financial and health goals will be aligned. The greater the gap between your age on a mortality table and your actually death, means more money to stay healthier, longer.
...or become trans-human and get infinite money :)
Of course there are a few caveats, such as minimum age of withdrawal and death risk, which are subject to penalty and forfeiture, respectively.
I discussed this strat with a CFA, the expected returns are low enough to not be worth it.
I'd be interested to see a writeup of the numbers and expected return.
We did napkin math. The crux of the issue is that annuities are normally bad (risk adjusted returns below the market), so gaming them, while an improvement, aren't nearly enough of an improvement to take them all the way to good.