Lack of intelligent planning on someone’s part is hardly the insurance company’s fault nor does it make them the villain. They are in business to make a profit and were doing what any intelligent organism would do: Make sure they weren’t being ripped off.
Buying an annuity, which is what this sounds like, is very rarely a sound investment but if you must, there are plenty that build-in cost of living etc. The company selling the annuity of course keeps all the money at the end, that’s how it works.
People do dumb things like this all the time. If you don’t understand the house rules, don’t get mad at the croupier when she takes your wager.
