Expectation of Life


Definition - What does Expectation of Life mean?

Expectation of life refers to the number of years a person is expected to live, based on mortality table calculations.

Expectation of life calculations are often used in life insurance to assess the risk of issuing a policy to an applicant.

Insuranceopedia explains Expectation of Life

The fewer years that a person is expected to have left in life, the higher the perceived risk of insuring them. Life insurance companies have to pay large death benefits when their policyholders die, and they must weigh this expense against the amount they are likely to receive in premium payments.

There are a number of things that can reduce of person's expectation of life, including advanced age, a family history of heart disease, and unhealthy habits such as smoking.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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