Life Expectancy

What Does Life Expectancy Mean?
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.

Related Terms

Accelerated Death Benefit - ADB
Actuarial Risk
Beneficiary
Internal Revenue Service - IRS
Life Insurance
Longevity Risk
Post-Retirement Risk
Pre-existing Condition
Required Minimum Distribution - RMD
Retirement Readiness
More Related Terms

Related Links

Retiring Early: How Long Should You Wait? - Maximize your Social Security benefits by choosing when you retire.
Life After Retirement - Here are some personal finance tips for those who want to live well after work ends.
Find High Yield CDs - Retire in style. Search for the 100 highest yielding CD's from Bankrate.com. Click Here!
Life Expectancy: It's More Than Just A Number - Find out how this factor determines your life insurance premiums and affects your payout.
Can You Retire In Five Years? - The countdown is on. Find out whether you'll be ready to leave the working world.
New Option For Beneficiaries: Reversionary Annuities - This vehicle can provide survivors with guaranteed income and lower premiums.
The Importance Of Estate And Contingency Planning - What would happen if you were suddenly unable to manage your financial affairs? Preparation is the best protection.
Buying Life Insurance: Term Versus Permanent - Would your death leave loved ones financially stranded? It's time to shop for peace of mind.
A Look At Single-Premium Life Insurance - Want to provide for your dependents and finance your own long-term care? Learn more here.
Personalizing Risk Tolerance - Forget the clichés and uncover how much volatility you can really stand.
Avoiding RMD Pitfalls - If you don't calculate your required minimum distributions accurately, you might have to pay an excise tax.
Exploring Types Of Fixed Annuities - Understand what you're getting when buying these. Here we look at differences, advantages and disadvantages.

Get a new investing term in your inbox each day!

- join our Term of the Day!