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. Mortality Table

    A table that shows the rate of deaths occurring in a defined ...
  5. Uniform Simultaneous Death Act ...

    A law used to determine the inheritance when more than one death ...
  6. Hazard Rate

    Hazard rate is the rate of death for an item of a given age (x). ...
Related Articles
  1. Managing Wealth

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
  2. 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.
  3. Insurance

    How a Death Benefit in a Variable Annuity Works

    A look at how the death benefit in a variable annuity works.
  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

    How Life Insurance Payouts Work

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

    Distribution Rules For Inherited Retirement Plan Assets

    If you've recently inherited a retirement plan, you must get to know the rules for distributing the funds.
  8. Retirement

    How Survivorship Life Insurance Works

    Should you buy a survivorship life insurance policy?
  9. Investing

    Estimating with Subjective Probability

    Subjective probability is someone’s estimation that an event will occur.
  10. Managing Wealth

    Use Life Insurance to Help Those With a Disability

    Why and how to use permanent life insurance to help provide for a family member with a disability or special needs
RELATED FAQS
  1. 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 >>
Hot Definitions
  1. Short Covering

    Short covering is buying back borrowed securities in order to close an open short position.
  2. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  3. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  4. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  5. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  6. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
Trading Center