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. Mortality Table

    A table that shows the rate of deaths occurring in a defined ...
  4. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  5. Aggregate Mortality Table

    Data on the death rate of everyone who has purchased life insurance, ...
  6. Actuarial Life Table

    A table or spreadsheet that shows the probability of a person ...
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. Personal Finance

    Plan for the Inevitable: How We Can Prepare for Death

    Preparing for death doesn't just include getting your financial house in order.
  3. Financial Advisor

    Estate Plans Should Include Instruction Manuals

    Death is not something that we wish to dwell on, but estate planning—and figuring out even more basic issues—is something we definitely should not avoid.
  4. Financial Advisor

    How Advisors Can Help Surviving Spouses

    When someone dies, it's natural for a surviving spouse to grieve. But with a little planning, fear of an unknown financial future can be avoided.
  5. Insurance

    Accidental Death And Dismemberment Insurance

    Accidental death and dismemberment insurance provides coverage if the policyholder dies by accidental means, or loses use of limbs or eyes.
  6. Insurance

    How Life Insurance Payouts Work

    Life insurance provides peace of mind to policyholders and their loved ones.
  7. Financial Advisor

    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.
  8. Insurance

    How Term Life Insurance Protects Your Loved Ones

    No one plans on dying early, but term life insurance helps your loved ones financially if you do.
  9. Investing

    Estimating with Subjective Probability

    Subjective probability is someone’s estimation that an event will occur.
RELATED FAQS
  1. 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 >>
Hot Definitions
  1. Net Profit Margin

    Net Margin is the ratio of net profits to revenues for a company or business segment - typically expressed as a percentage ...
  2. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
  3. Current Ratio

    The current ratio is a liquidity ratio measuring a company's ability to pay short-term and long-term obligations, also known ...
  4. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  5. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  6. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
Trading Center