Survivor Bond

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Dictionary Says

Definition of 'Survivor Bond'

A type of bond whose future coupons are based on the percentage of a stated population group who are still alive - the survivors, in other words - on the future coupon payment dates. As mortality increases and survivors of the group decrease over time, coupon payments decline until they eventually reach zero. Survivor bonds are used by annuity providers and pension plan managers to hedge aggregate longevity risk.
Investopedia Says

Investopedia explains 'Survivor Bond'

Longevity risk refers to the risk of loss sustained from an unanticipated reduction in mortality rates and a corresponding increase in longevity. While advances in health care and medicine have led to sustained increases in life expectancy over the years, aging populations are putting severe financial pressure on government pension plans around the world. Survivor bonds help annuity providers and pension plans hedge this risk, since these bonds are ideal for matching their liabilities in the presence of longevity risk.
Search results for

'Survivor Bond'

  • Retail Notes: A Simpler Alternative To Bond Funds

    http://www.investopedia.com/articles/bonds/05/retailnote.asp
    ... And investors who want to create an income (bond) ladder can purchase retail notes
    with different ... Finally, most retail notes have a unique survivor's option. ...

  • Immediate Annuities: More Income and Lower Taxes

    http://www.investopedia.com/articles/retirement/07/immediate_annuity.asp
    ... A payout plan that will continue to a survivor could be a better choice. Do
    you have a long life expectancy? ... Do you own bond mutual funds? ...

  • Selecting And Managing Insurance Payouts

    http://www.investopedia.com/articles/pf/08/insurance-payout-selection.asp
    ... Joint and survivor life income - Under this option, you can choose to have a ... US
    Treasuries; short-term bond funds. (For more information on Treasuries, read 20 ...

  • Series 7 Study Guide - Customer Accounts - Types of Brokerage ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/brokerage-accounts.asp
    ... 12.16 Revenue Bond Analysis; 12.17 Sources of Information. Chapter 13 - 14: 13. ... In
    the event of the death of one, the survivor automatically gets the interest of ...

  • Cut Your Tax Bill With Permanent Life Insurance

    http://www.investopedia.com/articles/pf/07/permanent_life_insurance_taxes.asp
    ... When the survivor dies, your heirs will not have to pay estate and income taxes
    on ... include a large-cap stock fund, an international stock fund, a bond fund, or ...

  • The Defined-Benefit Plan's Many Problems

    http://www.investopedia.com/articles/retirement/10/demise-defined-benefit-plan.asp
    ... Again, using the yield on the 30-year treasury bond of 4% as the discount ... The election
    of survivor benefits will affect the length of the time horizon benefits ...

  • 10 Common Questions About Social Security

    http://www.investopedia.com/articles/retirement/08/social-security-qa.asp
    ... Security benefits and the deceased's benefits were greater, the survivor will receive ...
    number of workers declines, repayment of the IOUs and bond principal will ...

  • CFP Study Guide - Financial Planning: Process and Rules ...

    http://www.investopedia.com/exam-guide/cfp/financial-planning-process-rules/default.asp
    ... Coupon and Municipal Bonds; 25.9 Types of Municipal Bonds; 25.10 Corporate
    Bond; 25.11 Convertible Bond Mathematics; 25.12 Callable and ...

  • CFP Study Guide - Principles of Risk and Insurance - Introduction ...

    http://www.investopedia.com/exam-guide/cfp/principles-of-risk-and-insurance/default.asp
    ... Coupon and Municipal Bonds; 25.9 Types of Municipal Bonds; 25.10 Corporate
    Bond; 25.11 Convertible Bond Mathematics; 25.12 Callable and ...

  • CFP Study Guide - Principles of Risk and Insurance - The Risk ...

    http://www.investopedia.com/exam-guide/cfp/principles-of-risk-and-insurance/cfp2.asp
    ... Coupon and Municipal Bonds; 25.9 Types of Municipal Bonds; 25.10 Corporate
    Bond; 25.11 Convertible Bond Mathematics; 25.12 Callable and ...

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