Securities that offer protection to business people exposed to longevity risks, such as insurers and pension plan managers who pay more in derivatives when people live longer than expected. Longevity bonds were the first longevity derivatives. The bonds are based on the population's survivorship, and the payments drop as the mortality rate goes up. Options, swaps, and forward contracts also include longevity derivatives.
Related information about longevity derivatives:
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Definition of longevity derivatives: Securities that offer protection to business people ... Options, swaps, and forward contracts also include longevity derivatives.
- LifeMetrics - Longevity Risk Assessment | J.P. Morgan
... and reinsurers to complement their existing toolkits for both managing and sourcing longevity and mortality risk; Build a liquid market for longevity derivatives ...