Back to Lexicon

Longevity bond

\lɔnˈʤɛvəti\ \bɑnd\

A longevity bond is a fixed income investment whose payments to investors (regular “coupons” and/or termination payment) are linked to the survivorship of a specified underlying population. Examples include Swiss Re’s Kortis Bond (2010).

As more people from the underlying population die, the payments decrease until the payments eventually cease. It is possible to base the bond payments on the survivorship of a specified group of people, or on the progression of a published longevity index capturing the survivorship of a wider more general population. An index-linked longevity bond is likely to be a more tradeable investment.

Keep exploring our Lexicon of Longevity
Back to Lexicon
Icon/Arrow/UpIcon/Pin/Calander12Icon/Close/blackIcon/Social/FacebookFlag/CanadaFlag/wolrdFlag/ukFlag/usaIcon/Social/LinkedinIcon/MinusIcon/PinIcon/ExpandIcon/QuoteIcon/Website-greenIcon/Website/grey