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. Mortality Table

    A table that shows the rate of deaths occurring in a defined ...
  2. Actuarial Age

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

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

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

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

    A set of data, presented in table format, showing when Americans ...
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. 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.
  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. Insurance

    5 Ways to Lower Life Insurance Premiums

    Learn several effective methods for lowering life insurance premiums. These include quitting smoking and considering term life insurance.
  9. 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.
  10. Insurance

    What Is the Best Age to Get Life Insurance?

    Learn about the optimal time for purchasing personal life insurance and why delaying the buying decision may have costly consequences.
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 >>
Hot Definitions
  1. Restricted Stock Unit

    Compensation offered by an employer to an employee in the form of company stock. The employee does not receive the stock ...
  2. Operating Ratio

    A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
  3. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  4. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  5. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center