So I go to the insurance agent and the insurance agent says

look if you pay a premium if you pay a premium every year of five hundred dollars of the .... the word premium litterally just means the amount that you would pay every year

Nobody was processing the credit cards.

Being always a little bit more less financially savvy than the term life is that... this is going to this as long as you continue to pay this premium this is guarantee, cause you will die one day unless you know something the rest of us don't know.

That's the name of the policy, and if you were to die.

I just realized that I didn't answer a question that might be burning in your brain because in whole life we talk about the scenario

And we also talked about the scenario where any time before that you decide that I don't need life insurance anymore, you can stop paying your premium.

In the whole live

Do they have food to take with the prescription?

So you probably would have been back definitely would have been better off and if this was your point if you wanted to save some and stil have life insurance for a fixed amount of time.

So one way to think is they get 1 dollar in premium for 100 dollars insurance or if they had 100 Sals they get 100 dollars in premium and the only way they would break even is if only one of those Sal's dies.

Insurance payment, it's on a monthly basis, right?

let's see those zeros cancel out, this zero cancels out, they're getting, over the life of the policy, 1 dollar in premiums for every 100 dollars in insurance.

It's overtime, over the terms party, that you will probably save more money and get more interest doing this

In the term life case once you become sixty or seventy and insurance companies charge you a lot higher of premium to insure you for this amount, because they think there is a high probability that they would have to pay it off.

Where you can pay this premium your whole entire life and in the event and you can just all the way until the day you die, so that when you die your family will definitely get the pay off.

After those ten years that you didn't die, nothing really happens you just keep on living

It's just a deposit kind of thing.

Mrs. Monkford cashes in the life insurance, and she splits it with Janus Cars.

Which really makes you ask the question, if you know your cash payout is larger than the amount of that is going to be paid off when you die.

The mortgage payment, we calculated that before, using our mathematical knowledge of geometric series.

Everything is risk free.

I chose to crash this party myself.

For years and years Natoma did everything right.

You pay the same.. I would call it very high premium your entire life and so earlier on in your life when you're thirty or forty or fifty.

What if all of these corporations, for whatever reason, do start defaulting simultaneously?

How much is the premium?

Comes from the idea that people did not like the id... people did not like this notion

Put it at 0 if you don't.

Patients might buy their own policy, go buy an insurance policy, pay them a premium directly, the insurance company collects that money.

And then year 10, I pay the 100,000 plus I pay back the 1 million.

So what they do is out of this 10 , they pay them some of the basis points.

At any points we'll just keep paying this policy until you die and then your family will get the pay off will get the five. so upon death... the beneficiares are the people, who will benefit from you policy.

Because that's essentially what a credit default swap is, it's insurance on debt.

Choice 3, I am going to pay you I'm making this up on the fly as I go I'm going to pay you 20 today.

Blame high fuel costs, blame insurance premiums, blame technology.

So actually, let me do that.

It always used to be metered and proportional to the service.

I mean, does it really matter?

Pay your fare here.

Insurance companies everywhere are facing hard times and have become even more tight fisted about payouts.

I probably wouldn't have noticed if you hadn't pointed it out.

I wanna keep gaining a premium my entire life and when I die, and all we know all of us will die. when I die there will be a payoff so... uhhh if I'm forty years old, I might be paying that premium for the next forty years but what If I'm eighty and I pass away at my eighty then my family will still get something for all of this insurance that I paid.

Insurance money... the company's agreed to pay.

And you say, this group of the CDOs, they'll get the first payments. or if any payments that go, immediately go to this very senior tranche, right?