I am new in finance.

If I want to propose an insurance product for retired people, and I am supposed to take on financial risks in the hope of profit.

Can someone give me some informative tips of what product I can propose and what should be its characteristics and benefits for both the insured and the insurer? Can someone help me on a good plan?

Any help will be vey appreciated.

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    What have you researched in response to this task and what do you seek to validate? – base64 Dec 11 '20 at 15:34

(Community Wiki, since homework is off-topic for the site.)

As you hopefully know, the idea behind life insurance is that it pays up if you die early, while expecting most people to die "late". The decades of premiums from the many people who die "late" cover the benefits to the relatively few people who die early.

But retired people are going to die sooner than later; there's relatively not much time to accumulate much in premiums.

Given that, here's the kind of product I'd make:

  • relatively low benefits,
  • relatively high premiums,
  • sell it as "building a nest egg for their grandchildren" or "not burdening their children with funeral costs",
  • waiting period while premiums are collected, but before the benefits are eligible to be paid out,
  • exclude many preexisting conditions,
  • lots of fine print which prevent most people from gaining the full benefits.
  • Thank you for your answer. But why retired people are going to die sooner than later? – Christina Dec 11 '20 at 16:07
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    Homework questions aren't automatically off topic, but it is expected that the asker show a bit of effort. – glibdud Dec 11 '20 at 16:16
  • @glibdud I will do my best now and I will return and edit my question when I collect sufficient research information:) – Christina Dec 11 '20 at 16:32
  • Do you have some helpful links that I can access? – Christina Dec 11 '20 at 16:38
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    @Christina "But why retired people are going to die sooner than later?" if life expectancy is 85, then there's 60 years until a 25 year old dies, but only 20 years until a 65 year old dies. – RonJohn Dec 11 '20 at 16:41

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