Loading the player...

DEFINITION of 'Yearly Probability Of Dying'

Yearly Probability Of Dying is 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.

Death Never Takes a Holiday

Insurers depend on volumes of mortality data to form the basis for life insurance, disability, annuity, health and workers compensation policies, to name a few. 

They know, for example, the odds of death from unintentional poisoning by and exposure to noxious substances are 1 in 7,586 in any given year and 1 in 96 over a lifetime. If that seems high, keep n mind this was the leading cause of death by injury in the U.S. In 2014, some 42,000 people died in this manner. For another leading cause of death, pedestrian incident, the odds are 1 in 6,258 each year and 1 in 647 over a lifetime, according to data complied by the Insurance Information Institute.

There's more: The odds of dying from an injury in 2014 were 1 in 1,576 according to the latest data available; the lifetime odds of dying from an injury for a person born in 2014 were 1 in 20; the odds of dying from drug poisoning were 1 in 7,586 in 2014; the lifetime odds were 1 in 96 for a person born in 2014, reported III.

"Heart disease is the leading cause of death in the United States, accounting for 633,842 fatalities in 2015, according to the Centers for Disease Control and Prevention. Influenza and pneumonia ranked eighth in 2015, accounting for some 57,000 fatalities. However, pandemic influenza viruses have the potential to be far more deadly. An estimated 675,000 Americans died during the 1918 Spanish influenza pandemic, the deadliest and most infectious known influenza strain to date," according to the institute.

According to Smithsonian Magazine, your odds of dying increase every eight years throughout life until the odds become a reality. For a 25-year old, the odds of dying are pretty small: 0.03. By the time you reach 100, the odds of living another year are 50/50. 

RELATED TERMS
  1. Yearly Probability Of Living

    Yearly probability of living is a numerical figure that depicts ...
  2. Additional Death Benefit

    The amount that is paid to the beneficiary of a life insurance ...
  3. Death Bond

    A death bond is a security derived by pooling together transferable ...
  4. Guaranteed Earning Increase Death ...

    A guaranteed earning increase death benefit is a type of option ...
  5. Accelerated Death Benefit (ADB)

    An accelerated death benefit (ADB) allows a life insurance policyholder ...
  6. Golden Coffin

    A golden coffin is a death benefit package awarded to the heirs ...
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

    Why You Should Buy Life Insurance

    If you haven't thought about life insurance or you're toying with the idea, we give you some reason why it might be wise to buy.
  3. Insurance

    Tips for Helping Clients with Life Insurance Needs

    Life insurance needs will likely change over the client’s lifetime and again financial advisers can provide an objective sounding board.
  4. Insurance

    Life Insurance: How Long Does It Take To Get Paid?

    Learn how to file for a life insurance payout—and how long it takes to receive it. Plus, new ways to plan for payments that provide an income stream.
  5. Insurance

    6 Ways to Capture the Cash Value in Life Insurance

    Here's how to make the cash value of your life insurance policy benefit you or your beneficiaries instead of the insurance company.
  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. Insurance

    Could You Be Owed a Life Insurance Payout?

    If you’re not certain whether or not your deceased loved one had a life insurance policy, it doesn’t hurt to do a little research.
  8. Personal Finance

    Why Your Will Needs a 'Titanic Clause'

    If you don't have a Titanic clause in your will and disaster strikes, there's no guarantee that your intended beneficiaries will inherit your assets.
Trading Center