Life Expectancy

Life expectancy is a statistical measure that estimates how long a person is expected to live. It is computed for an individual or for classes of people such as women between the ages of 35-45. The statistic can be computed by taking into account family history, physical condition, nutrition, environment, lifestyle habits such as smoking, exercise, and sleep patterns. Insurance companies use life expectancy tables to calculate your premium as well as the payout that you get from your annuity. The longer you live, the longer you’re expected to continue living. Figuring out your life expectancy will give you an idea as to how much you need in retirement savings to ensure you don’t run out of money before your death. The IRS Publication 590 is a single life expectancy table.

S. Jay Olshansky on Why the Message is All About Extending Health

S. Jay Olshansky is a Professor in the School of Public Health at the University of Illinois at Chicago and Research Associate at the Center on Aging at the University of Chicago and at the London School of Hygiene and Tropical Medicine. Much of Dr. Olshanky's research has focused on the upper limits to human longevity and the health and public policy implications associated with aging.  We had an opportunity to connect with Jay at the recent SOA Living to 100 Symposium.

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An Interview with Gordon Woo of RMS

AD: Your book Calculating Catastrophe discusses the dynamic nature of catastrophe risks, and you have written elsewhere about how...

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A Capital Market for the Risks of Aging Societies

Swiss Re is very good at highlighting the scale of longevity risk on a global basis and the challenges--financial and otherwise--that result from aging societies. A recent report from Swiss Re highlights the magnitude of the longevity risk challenge and calls for the development of a capital market to deal with the high hurdle of funding longer lives. Points from the report that highlight the scope of longevity risk include: The aggregate value of defined benefit pension liabilities on a global...

The Best Time to Buy an Annuity Depends on Mortality

A basic life annuity makes payments when the annuity owner is alive.   

In this sense, an annuity is the reverse of...

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Report Suggests Longevity Projections are Underestimated

A recent research report from Swiss Re suggests that life expectancy increases over the past several decades have been consistently underestimated. The report, titled “ A window into the future: Understanding and predicting longevity ,” examines the traditional methods of forecasting life expectancy—both of which are largely based on historical trends. For example, the “blending approach” combines historical data with assumptions about the future. A second approach...
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