Life Expectancy
What Does Life Expectancy Mean?
An individual’s life expectancy is the estimated number of years they are expected to live, based on statistical data. Insurers take life expectancy into account when determining premiums for certain insurance policies, as it helps them assess the risk associated with providing coverage.
Insuranceopedia Explains Life Expectancy
Life expectancy is influenced by various factors, including genetics, lifestyle, and the mortality rates of the demographic group an individual belongs to.
Insurers use life expectancy calculations to help determine premiums for policies such as life insurance. Typically, individuals who are expected to live longer may be offered lower premiums. Additionally, individuals often consider their own estimated life expectancy when deciding to purchase insurance or plan for retirement.
