Life expectancy

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Life expectancy

The length of time that an average person is expected to live, which is used by insurance companies use to make projections of benefit payouts.

Life Expectancy

The length of time the average person is anticipated to continue living. An insurance company may use the "official" life expectancy of a person at a certain age in determining the risk of a life insurance policy or annuity. Likewise, the IRS uses the average life expectancy to determine the required minimum distribution from IRAs. Often, the official life expectancy has only a rough relationship with an individual person's actual life expectancy.

Life expectancy.

Your life expectancy is the age to which you can expect to live. Actuarial tables establish your official life expectancy, which insurance companies use to evaluate the risk they take in selling you life insurance or an annuity contract.

The Internal Revenue Service (IRS) also uses life expectancy to determine the distribution period you must use to calculate minimum required distributions from your retirement savings plans or traditional IRAs.

However, your true life expectancy, based on your lifestyle, family history, and other factors, may be longer or shorter than your official life expectancy.

References in periodicals archive ?
The study used data from 24,971 people aged 20 years or older with type 1 diabetes and living in Scotland during 2008-2010, and compared the calculated life-expectancy rates with those of average men and women without type 1 diabetes in the Scottish population of about 12 million people.
The life-expectancy of African American males is significantly shorter than that of white-Anglo males in the United States; however, both groups are required, by law, to contribute to the Social Security Fund at the same rate.
To switch from the five-year rule, a beneficiary must take all of the distributions that would have been required had he or she been using the life-expectancy method, by the earlier of the original five-year term or Dec.
The authors speculate that, once a basic level of health care is achieved, there is a decline in the life-expectancy returns on additional expenditures.