Actuarial Age

AAA

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.

INVESTOPEDIA EXPLAINS '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. Attained Age

    1) The age at which the beneficiary of an insurance policy, retirement ...
  2. Actuary

    A professional statistician working for an insurance company. ...
  3. Actuarial Analysis

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

    The risk that the assumptions that actuaries implement into a ...
  5. Actuarial Gain Or Loss

    Gain or loss arising from the difference between estimates and ...
  6. Actuarial Adjustment

    A revision made to reserves, premiums and other values based ...
Related Articles
  1. Insure Your Future With A Career As ...
    Home & Auto

    Insure Your Future With A Career As ...

  2. Operational Risk: A Must-Know For Investors
    Active Trading Fundamentals

    Operational Risk: A Must-Know For Investors

  3. Can Investors Trust Official Statistics?
    Economics

    Can Investors Trust Official Statistics?

  4. Why You Don’t Need Mortgage Protection ...
    Insurance

    Why You Don’t Need Mortgage Protection ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center