PLS=Tontine?

Reader comment on: Prize Linked Savings Accounts

Submitted by Eric Singer (United States), Oct 12, 2010 15:26

First, under principles of Freedom, PLS should be allowed. If the government condones lotteries, it should condone PLS. BTW, under the mob, lotteries had a much better payout.

Second, PLS vaguely reminds me of Social Security , where returns are suppressed for random events. What do you call an insurance plan that on average pays 6% less than prevailing internal return rates on other annuity plans? When its compulsory, you call it extortion.

Lastly, I worry a little about the incentives for customer attrition. cf. The Wrong Box with Dudley Moore and John Mills and Ralph Richardson.

Note: Comments are moderated by the editor and are subject to editing.

Other reader comments on this item

Comment on this item