Life Expectancy

Updated: 29 February 2024

What Does Life Expectancy Mean?

An individual’s life expectancy is the number of years they are expected to live, based on statistical research. Insurers factor in life expectancy when determining the premium for certain insurance policies.

Insuranceopedia Explains Life Expectancy

Life expectancy is based on several factors, including genetics, lifestyle, and the mortality of the demographics the individual belongs to.

Insurers use life expectancy calculations when pricing premiums for policies such as life insurance, typically offering lower life insurance premiums to applicants who are likely to live longer. Individuals often also consider their own estimated life expectancy when deciding to buy insurance or when planning for retirement.

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