An endowment policy is a life insurance contract designed to pay a lump sum after a specific term or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit.
That is only an example. If you believe that , for example, that it is likely that humanity will go extinct in 2030 - you shall not make an investment for which the pay day is after 2030. Because the anticipated profit is 0.
So, rephrasing my question: Is it rational to make an investment today for which the returns are after 2040? (Because humanity might go extinct due to AI by then).
OK, thanks for the explanation. Yeah life insurance seems marginally useful to me anyway (It costs money in expectation, but makes your risk profile better) so adding in a 30-50% chance that it’ll never pay off makes it clearly not worth it I think. To answer your question, well, it would depend on how good the returns are, but they’d have to be unusually high for me to recommend it.
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. That is only an example. If you believe that , for example, that it is likely that humanity will go extinct in 2030 - you shall not make an investment for which the pay day is after 2030. Because the anticipated profit is 0. So, rephrasing my question: Is it rational to make an investment today for which the returns are after 2040? (Because humanity might go extinct due to AI by then).
OK, thanks for the explanation. Yeah life insurance seems marginally useful to me anyway (It costs money in expectation, but makes your risk profile better) so adding in a 30-50% chance that it’ll never pay off makes it clearly not worth it I think. To answer your question, well, it would depend on how good the returns are, but they’d have to be unusually high for me to recommend it.
I see. Thanks for responding.