False advertising is the illegal part not the idea behind it.
http://qr.ae/TUpsAU
From the link posted above here are two examples.
In the most upvoted reply: social security does the same thing. There are other things that function in the same way, if you think of the financial crisis of 2009 was due to banks becoming more like ponzi schemes and not having enough actual money in their posession and being in too much debt with the government banks. If you think also about insurance companies, sure they have methods of reducing the amount they have to pay if they really need to and to sort out other stuff, but if thousands of people needed to claim against a few million dollars of losses each, that insurance company would collapse.