Definition of Life expectancy:
The average amount of years remaining in a persons life, as per the mortality table being used as a reference.
Life expectancy is the single most influential factor that insurance companies use to determine life insurance premiums. Using actuarial tables provided by the Internal Revenue Service, these companies try to minimize the liability risk.
Life expectancy is the statistical age that a person is expected to live until, based on actuarial data. There are many uses for it in the financial world, including life insurance, pension planning, and U.S. Social Security benefits. In most countries, the calculations for this actuarial age is derived from a national statistical agency based on large amounts of data.
The average period that a person may expect to live.
Synonyms of Life expectancy
Duration, Life, Active life, Existence, Life expectancy, Functioning period, Period of effectiveness, Period of efficacy, Period of usefulness, Period of validity
How to use Life expectancy in a sentence?
- Life expectancy is used in pricing and underwriting life insurance and insurance products like annuities, as well as in retirement and pension planning.
- Based on actuarial science, life expectancy takes into account several individual-level as well as population-level factors to arrive at a figure.
- Life expectancy is a statistical prediction for how long a person will live.
- The British male now has a life expectancy of 77.6 years.
Meaning of Life expectancy & Life expectancy Definition