Yearly Probability Of Dying

Loading the player...

DEFINITION of 'Yearly Probability Of Dying'

A numerical figure that depicts the likelihood of someone dying per year. The yearly probability of dying is determined by looking at a mortality table which shows the rate of death at each age in terms of the number of deaths per thousand. The data in the chart is determined by dividing the number of people dying during a given year by the number of people alive at the beginning of that same year.

BREAKING DOWN 'Yearly Probability Of Dying'

The yearly probability of dying is often associated with calculations involving insurance probability estimates. In calculating these death probabilities, some associated terms include instantaneous death, force of mortality and quinquennial (recurring every five years) death probabilities.

RELATED TERMS
  1. Yearly Probability Of Living

    A numerical figure that depicts the likelihood of someone living ...
  2. Valuation Mortality Table

    A statistical chart that is used by insurance companies to calculate ...
  3. American Experience Table

    A set of data, presented in table format, showing when Americans ...
  4. Level Death Benefit

    A life insurance payout that is the same whether the insured ...
  5. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  6. Ultimate Mortality Table

    A mortality table that lists the death rates of insured persons ...
Related Articles
  1. Insurance

    Calculating Yearly Probability of Dying

    The yearly probability of dying is a figure that predicts annual death rates for a population.
  2. Insurance

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
  3. Professionals

    Introduction to the Evaluation of Risk Exposure

    Introduction to the Evaluation of Risk Exposure
  4. Insurance

    Extreme Mortality Bonds: High Risk and High Reward

    Insurance companies issue extreme mortality bonds to cover their losses in the event of a large-scale disaster. Here's a look into these high-risk, high-reward bonds.
  5. Insurance

    How Life Insurance Payouts Work

    Life insurance provides peace of mind to policyholders and their loved ones.
  6. Insurance

    How to Compare Permanent Life Insurance Policies

    How you can use the internal rate of return to compare and purchase a permanent life insurance policy.
  7. Personal Finance

    How Survivorship Life Insurance Works

    Should you buy a survivorship life insurance policy?
  8. Taxes

    Estate Planning: 16 Things To Do Before You Die

    Find out what you need to prepare to avoid serious estate planning mistakes.
  9. Budgeting

    The Complete Guide To Retirement Planning For 40-Somethings: Life Insurance

    If you have dependents who rely on your income, consider whether you need to purchase life insurance. Proceeds from your life insurance can be used for purposes such as: Providing replacement ...
  10. Options & Futures

    Play The Game Of Life

    The only real difference between you and Warren Buffett is a few well-chosen stocks – the billion-dollar fortune is the result.
RELATED FAQS
  1. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
  2. How can traders profit from a death cross pattern?

    Seek long-term profits by using the death cross pattern to identify either a trading entry point or a major resistance level ... Read Answer >>
  3. What happens to my Locked-In Retirement Account (LIRA) balance when I die?

    Understand that in the event of your death, Locked-In Retirement Account death benefits will be transferred to your partner, ... Read Answer >>
  4. How long does an IRA beneficiary have to take an RMD after the IRA holder dies?

    Let's suppose the IRA holder, we'll call him Tom, dies in 2008. If Tom was required to take a required minimum distribution ... Read Answer >>
  5. What is the difference between the death benefit and cash value of an insurance policy?

    Understand the difference between the various components of a life insurance policy including the death benefit and a policy's ... Read Answer >>
  6. What does it mean when an index or stock exhibits a death cross?

    Find out what it means when an index, stock or exchange exhibits a death cross pattern between its short-term and long-term ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center