DEFINITION of 'Actuarial Age'

An individual's life expectancy based on calculations and statistical modeling. Actuaries use mathematical and statistical computations to predict a person's life expectancy, or his or her actuarial age, to assist insurance companies with pricing, forecasting and planning. For instance, knowing a person's actuarial age will help determine the most appropriate payments from an annuity.

BREAKING DOWN 'Actuarial Age'

A person's actuarial age is the age to which mathematical and statistical modeling indicate a person will live. The actuarial age reflects factors such as health and serious medical conditions. Actuaries assess risk for insurance companies and use computerized predictive modeling to project probable outcomes for a wide variety of circumstances.

RELATED TERMS
  1. Actuarial Life Table

    A table or spreadsheet that shows the probability of a person ...
  2. Government Actuary

    An employee of the U.K. government who works for the Government's ...
  3. Actuarial Assumption

    An actuarial assumption is an estimate of an uncertain variable ...
  4. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
  5. Society of Actuaries (SOA)

    The SOA is a professional organization for actuaries in the U.S., ...
  6. Actuarial Adjustment

    A revision made to reserves, premiums and other values based ...
Related Articles
  1. Personal Finance

    Career Advice: Accounting Vs. Actuary

    Read about what life is like as an actuary or as an accountant, how the two careers are different and how to decide which is best for you.
  2. Personal Finance

    Top Paying Math-Related Careers

    These jobs require specialized math skills that intimidate most laymen. But, for those with the wit and work ethic to attain this knowledge, there are many high-paying employment options.
  3. Insurance

    For Life Insurers, Making Money Is A Numbers Game

    Life insurance is a data-driven industry that relies on complex financial models to predict future expenses and income from premiums and investments.
  4. Financial Advisor

    How Long Will You Live? This Tool Will Tell You

    Longevity-calculating tools help advisors guide clients through their financial livelihood during their retirement years. Here's a look at some of them.
  5. Financial Advisor

    10 Best Companies for Obtaining Life Insurance Over 50 (MET, PRU)

    For individuals over age 50 with differing needs, the best life insurance companies include large financial services companies and smaller mutual entities.
  6. Financial Advisor

    How Smokers Can Obtain Life Insurance

    Smokers pay higher premiums for life insurance than nonsmokers. However, they can still find a great deal by shopping around with various companies.
  7. Tech

    8 Profitable Majors For The College-Bound In 2016

    Choose your college major wisely to justify the rising cost of higher education. Here are 8 majors that lead to good jobs and high salaries.
  8. Insurance

    Life Insurance: How Much Does Age Raise Your Rate?

    If you need life insurance, try to get it before your next birthday. Here's why.
  9. Insights

    Financial Designations That Employers Require

    We break down the designations that are important to have if you want to work in the financial sector.
  10. Insurance

    How to Keep Life Insurance Costs Down

    Curbing all costs and expenses is a priority for most people and buying life insurance is no different. Here's how to go about it.
RELATED FAQS
  1. What's the average salary of an actuary?

    Get insight into the intriguing career of risk analysis and forecasting. How much do actuaries make, and how is this field ... Read Answer >>
  2. What caused the European / Eurozone debt crisis?

    Understand how insurance companies price insurance premiums, and learn the importance of data and statistics in the insurance ... Read Answer >>
  3. What are the main factors that impact share prices in the insurance sector?

    Learn about some of the main factors that impact share prices in the insurance sector. Insurance companies make money by ... Read Answer >>
Hot Definitions
  1. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  2. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  3. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  4. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  5. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
  6. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities ...
Trading Center