(Almost) any thank-you gift... just $5/month or more! GIVE NOW

Buzzword: Death bonds

Marketplace Staff Feb 23, 2007

A rather “morbid” investment brings us this week’s Marketplace Money buzzword: death bonds.

A death bond isn’t a contract you sign with a hitman. It’s a bond issued by . . . a life insurance company. You loan them your money. If the world’s a safe place, and the company pays off very few claims, then you get the money back — with interest! But if there are lots of claims, like after a catastrophy, then the company can use your loan to pay off policyholders — and you might need some financial CPR.

Death bonds are one way to diversify a lifeless profolio. Though, unlike death itself, they’re not for everyone.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.

It’s a great day to invest in Marketplace at any level!

Donate $5/month or more today to get almost ANY thank-you gift.