DEFINITION of 'Actuarial Life Table'

A table or spreadsheet that shows the probability of a person at a certain age dying before his or her next birthday. These statistics calculate the remaining life expectancy for people at different ages and the probability of surviving a particular year of age. Because men and women have differing mortality rates, an actuarial life table is computed for separately for men and women.


Also called mortality table, life table or actuarial table.

BREAKING DOWN 'Actuarial Life Table'

Insurance companies utilize actuarial life tables to help price products and project future insured events. Mathematically and statistically based actuarial life tables assist by showing event probabilities, such as death, sickness and disability. An actuarial life table can also include factors to differentiate variable risks such as smoking, occupation, socio-economic status and even gambling and debt load. Computerized predictive modeling allows actuaries the ability to calculate for a wide variety of circumstances and probable outcomes.

RELATED TERMS
  1. Actuarial Age

    An individual's life expectancy based on calculations and statistical ...
  2. Actuary

    A professional dealing with the assessment and management of ...
  3. Aggregate Mortality Table

    Data on the death rate of everyone who has purchased life insurance, ...
  4. Actuarial Service

    Method by which corporations determine, assess and plan for the ...
  5. American Experience Table

    A set of data, presented in table format, showing when Americans ...
  6. Commissioners Standard Industrial ...

    A mathematical table used by actuaries to calculate the nonforfeiture ...
Related Articles
  1. Personal Finance

    Insure Your Future with a Career as an Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  2. Personal Finance

    The Top 5 Skills Every Actuary Needs

    The actuary profession is growing fast. Here's a look at the majors and top skills one needs to become a successful actuary.
  3. 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.
  4. Financial Advisor

    Career Advice: Financial Analyst Vs. Actuary

    Read an in-depth comparison between financial analysts and actuaries, what it's like to work as each and how to determine which is best for you.
  5. Insurance

    Calculating Yearly Probability of Dying

    The yearly probability of dying is a figure that predicts annual death rates for a population.
  6. Personal Finance

    A Day In The Life Of An Actuary

    We take a look at the typical workday of three actuaries who work for different types of companies and who are at different stages in their careers.
  7. 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.
  8. Managing Wealth

    Life Expectancy: It's More Than Just A Number

    Find out how this factor determines your life insurance premiums and affects your payout.
  9. Investing

    Reading Financial Tables Tutorial

    Learn about six common types of financial tables and figure out how to interpret them.
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. When should I take my Canadian Pension Plan distributions?

    The Canadian Pension Plan (CPP) is a retirement program from which contributing Canadians may receive payments at the age ... Read Answer >>
  3. 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 >>
Hot Definitions
  1. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  2. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  3. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  4. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  5. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  6. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
Trading Center