[sgbuffett]

He called CPF Life an annuity akin to selling a put option to collect premiums on your life....a financial derivative sold by the govt.

If you die early, others will capitalize on your death.
You need to live longer to keep collecting premiums.

After the video was posted, he received hateful comments from whom he called brainwashed S'poreans. Some threatening to report him to the authorities.

He describes his ordeal in the early part of this video.

[sgbuffett]

So is CPF Life a financial derive?

1. You collect bets from people betting in you demise.
2. If you live you collect next round of bets.
3. You you die(lose), you pay winners money less the Bequest funds

Loosely speaking it's a derivative whose outcome depends on probability of you dying

When there is uncertainty in financial outcome we can say it's a derivative.

A savings account where outcome is deterministic is not a derivative.