Actuarial Age


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.

  1. Attained Age

    1) The age at which the beneficiary of an insurance policy, retirement ...
  2. Actuarial Gain Or Loss

    Gain or loss arising from the difference between estimates and ...
  3. Actuarial Risk

    The risk that the assumptions that actuaries implement into a ...
  4. Actuary

    A professional statistician working for an insurance company. ...
  5. Actuarial Adjustment

    A revision made to reserves, premiums and other values based ...
  6. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
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