Jon Matthews, 59, from Milton Keynes, was diagnosed with mesothelioma, a cancer linked to asbestos, in 2006 and told he had months to live.
He placed two bets, each with a £100 stake at odds of 50/1, that he would be alive in June 2008 and in June 2009.
A third wager will earn him a further £10,000 if he lives until 1 June 2010.
The widower will collect his second lot of £5,000 winnings on Monday.
Perhaps an actuary could comment on the pricing of this contract.
Note that traditional life insurance is really death insurance (i.e. one insures one’s self against a premature death). So this contract is true life insurance?