Definition of 'Life Expectancy'
1. The age until which a person is expected to live.
2. The remaining number of years an individual is expected to live, based on IRS issued life expectancy tables. The life expectancy, for required minimum distribution (RMD) calculation purposes, is determined by the current age of the individual.
Investopedia explains 'Life Expectancy'
1. Also referred to as the average life span. It is used mainly by insurance companies to determine your premium.
2. The IRS life expectancy tables are used to calculate the RMD for retirement account owners and their beneficiaries.