Actuarial Life Table

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.

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